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Office of the Revisor of Statutes

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

                             CHAPTER 11-S.F.No. 343 
                  An act relating to real property; making changes in 
                  provisions about certificates of title and the Common 
                  Interest Ownership Act; making miscellaneous changes 
                  to alter real property provisions; amending Minnesota 
                  Statutes 1998, sections 40A.10, subdivisions 1 and 3; 
                  40A.11, subdivision 4; 47.20, subdivision 2; 51A.02, 
                  subdivision 29; 60C.09, subdivision 1; 83.20, 
                  subdivisions 11 and 14; 103F.612, subdivisions 2 and 
                  4; 103F.613, subdivision 3; 103I.235, subdivision 1; 
                  238.22, subdivision 3; 273.124, subdivision 2; 
                  297H.01, subdivision 8; 327C.095, subdivision 5; 
                  357.18, subdivision 1; 359.02; 386.31; 389.09; 
                  428A.11, subdivisions 4 and 6; 462C.02, subdivisions 4 
                  and 5; 462C.05, subdivision 1; 473H.02, subdivision 6; 
                  473H.05, subdivision 1; 473H.06, subdivisions 1 and 2; 
                  473H.08, subdivision 4; 500.20, subdivision 2a; 
                  505.08, subdivision 3; 507.421; 508.14; 508.24, 
                  subdivision 2; 508.25; 508.35; 508.36; 508.38; 508.40; 
                  508.421, subdivision 2; 508.47, subdivision 4; 508.49; 
                  508.51, subdivision 1; 508.52; 508.55; 508.56; 508.57; 
                  508.58; 508.59; 508.61, subdivisions 2 and 3; 508.67; 
                  508.68; 508.71, subdivisions 2, 4, 5, 6, and by adding 
                  a subdivision; 508.76; 508.82, subdivision 1; 508A.10; 
                  508A.11, subdivision 3; 508A.22, subdivisions 2 and 3; 
                  508A.25; 508A.35; 508A.38; 508A.40; 508A.421, 
                  subdivision 2; 508A.47, subdivision 4; 508A.49; 
                  508A.51, subdivision 1; 508A.52; 508A.55; 508A.56; 
                  508A.57; 508A.58; 508A.59; 508A.61, subdivisions 2 and 
                  3; 508A.71, subdivisions 2, 3, 5, 6, and by adding a 
                  subdivision; 508A.72; 508A.76; 508A.82, subdivision 1; 
                  508A.85, subdivisions 3 and 4; 515B.1-102; 515B.1-103; 
                  515B.1-116; 515B.2-101; 515B.2-104; 515B.2-105; 
                  515B.2-108; 515B.2-109; 515B.2-110; 515B.2-113; 
                  515B.2-118; 515B.2-119; 515B.2-121; 515B.2-122; 
                  515B.3-103; 515B.3-105; 515B.3-106; 515B.3-110; 
                  515B.3-113; 515B.3-115; 515B.3-116; 515B.3-121; 
                  515B.4-101; 515B.4-102; 515B.4-106; 515B.4-107; 
                  515B.4-108; 515B.4-111; 515B.4-115; 524.2-201; 559.21, 
                  subdivision 2a; and 582.32, subdivision 5; proposing 
                  coding for new law in Minnesota Statutes, chapters 
                  386; and 515B; repealing Minnesota Statutes 1998, 
                  sections 473H.02, subdivision 11; 473H.05, subdivision 
                  3; 508.405; 508.421, subdivision 1; 508.44; 508.45; 
                  508.51, subdivision 2; 508.835; 508A.421, subdivision 
                  1; 508A.44; 508A.45; 508A.51, subdivision 2; and 
                  508A.835. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
           Section 1.  Minnesota Statutes 1998, section 40A.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONTENTS.] An eligible person may apply to 
        the county in which the land is located for the creation of an 
        agricultural preserve on forms provided by the commissioner.  In 
        case a preserve is located in more than one county, the 
        application must be submitted to the county in which the 
        majority of the land is located.  The application shall be 
        executed and acknowledged in the manner required by law to 
        execute and acknowledge a deed and must contain at least the 
        following information and other information the commissioner 
        requires:  
           (a) Legal description of the area to be designated and 
        parcel identification numbers where designated by the county 
        auditor; 
           (b) Name and address of the owner; 
           (c) A witnessed signature of statement by the owner 
        covenanting that the land will be kept in exclusive agricultural 
        use and will be used in accordance with the provisions of this 
        chapter that exist on the date of application; and providing 
           (d) A statement that the restrictive covenant will be 
        binding on the owner or the owner's successor or assignee, and 
        will run with the land.  
           In the case of registered property, the owner shall submit 
        the owner's duplicate certificate of title along with the 
        application.  
           Sec. 2.  Minnesota Statutes 1998, section 40A.10, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RECORDING.] Within five days of the date of 
        application, the county shall forward the application to the 
        county recorder, together with the owner's duplicate certificate 
        of title in the case of registered property for recording, or to 
        the registrar of titles for filing if the land is registered.  
        The county recorder shall record the application containing the 
        restrictive covenant and return it to the applicant.  In the 
        case of registered property, the recorder If the land is 
        registered, the registrar of titles shall memorialize 
        the application containing the restrictive covenant upon the 
        certificate of title and the owner's duplicate certificate of 
        title.  The recorder or registrar of titles shall notify the 
        county that the covenant application has been recorded or 
        memorialized.  
           Sec. 3.  Minnesota Statutes 1998, section 40A.11, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NOTICE AND RECORDING; TERMINATION.] When the 
        county receives notice under subdivision 2 or serves notice 
        under subdivision 3, the county shall forward the original 
        notice to the county recorder for recording, or to the registrar 
        of titles if the land is registered, and shall notify the 
        regional development commission, the commissioner, and the 
        county soil and water conservation district of the date of 
        expiration.  Designation as an agricultural preserve and the 
        benefits and limitations contained in this chapter and the 
        restrictive covenant filed with the application cease on the 
        date of expiration.  In the case of registered property, the 
        county recorder If the land is registered, the registrar of 
        titles shall cancel the memorial of the application containing 
        the restrictive covenant upon the certificate of title and the 
        owner's duplicate certificate of title on the effective date of 
        the expiration.  
           Sec. 4.  Minnesota Statutes 1998, section 103F.612, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION.] (a) A wetland owner may apply to 
        the county where a wetland is located for designation of a 
        wetland preservation area in a high priority wetland area 
        identified in a comprehensive local water plan, as defined in 
        section 103B.3363, subdivision 3, and located within a high 
        priority wetland region designated by the board of water and 
        soil resources, if the county chooses to accept wetland 
        preservation area applications.  The application must be made on 
        forms provided by the board.  If a wetland is located in more 
        than one county, the application must be submitted to the county 
        where the majority of the wetland is located.  
           (b) The application shall be executed and acknowledged in 
        the manner required by law to execute and acknowledge a deed and 
        must contain at least the following information and other 
        information the board of soil and water resources requires:  
           (1) legal description of the area to be approved, which 
        must include an upland strip at least 16-1/2 feet in width 
        around the perimeter of wetlands within the area and may include 
        total upland area of up to four acres for each acre of wetland; 
           (2) parcel identification numbers where designated by the 
        county auditor; 
           (3) name and address of the owner; 
           (4) a witnessed signature of statement by the owner 
        covenanting that the land will be preserved as a wetland and 
        will only be used in accordance with conditions prescribed by 
        the board of water and soil resources; and providing 
           (5) a statement that the restrictive covenant will be 
        binding on the owner and the owner's successors or assigns, and 
        will run with the land.  
           (c) The upland strip required in paragraph (b), clause (1), 
        must be planted with permanent vegetation other than a noxious 
        weed. 
           (d) For registered property, the owner shall submit the 
        owner's duplicate certificate of title with the application.  
           Sec. 5.  Minnesota Statutes 1998, section 103F.612, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RECORDING.] Within five days of the date of 
        application, the county shall forward the application to the 
        county recorder, with the owner's duplicate certificate of title 
        in the case of registered property for recording or to the 
        registrar of titles for filing if the land is registered.  The 
        county recorder shall record the application containing the 
        restrictive covenant and return it to the applicant.  In the 
        case of registered property, the recorder If the land is 
        registered, the registrar of titles shall memorialize the 
        application containing the restrictive covenant upon the 
        certificate of title and the owner's duplicate certificate of 
        title.  The recorder or registrar of titles shall notify the 
        county that the covenant application has been recorded or 
        memorialized.  
           Sec. 6.  Minnesota Statutes 1998, section 103F.613, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NOTICE AND RECORDING; TERMINATION.] When the 
        county receives notice under subdivision 2, the county shall 
        forward the original notice to the county recorder for recording 
        or to the registrar of titles for filing if the land is 
        registered and shall notify the regional development commission, 
        where applicable, the board of water and soil resources, and the 
        county soil and water conservation district of the date of 
        expiration.  The benefits and limitations of the wetland 
        preservation area and the restrictive covenant filed with the 
        application cease on the date of expiration.  For registered 
        property, the county recorder If the land is registered, the 
        registrar of titles shall cancel the memorial of the application 
        containing the restrictive covenant upon the certificate of 
        title and the owner's duplicate certificate of title on the 
        effective date of the expiration.  
           Sec. 7.  [386.071] [DOCUMENTS MISFILED.] 
           The county recorder may reasonably rely on the affirmative 
        representation of the party presenting instruments for filing as 
        to whether the land described in the instruments or any part of 
        it is registered or unregistered.  A party who requests that 
        misfiled instruments be refiled with the registrar is 
        responsible for paying any additional fees required to properly 
        file any instrument misfiled because of an incorrect 
        representation and, if applicable, to enter a new certificate of 
        title.  
           Sec. 8.  Minnesota Statutes 1998, section 473H.02, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COVENANT AGREEMENT.] "Covenant agreement" means 
        a restrictive covenant initiated by the owner and evidenced by 
        an agreement contained in the application provided for in 
        section 473H.05 whereby the owner places the limitations on 
        specified land and receives the protections and benefits 
        contained in sections 473H.02 to 473H.17.  
           Sec. 9.  Minnesota Statutes 1998, section 473H.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BEFORE MARCH 1 FOR NEXT YEAR'S TAXES.] An 
        owner or owners of certified long term agricultural land may 
        apply to the authority with jurisdiction over the land on forms 
        provided by the commissioner of agriculture for the creation of 
        an agricultural preserve at any time.  If the land to be placed 
        in a preserve is registered property, the owner shall submit the 
        owner's duplicate certificate of title together with the 
        application.  Land for which application is received prior to 
        March 1 of any year shall be assessed pursuant to section 
        473H.10 for taxes payable in the following year.  Land for which 
        application is received on or after March 1 of any year shall be 
        assessed pursuant to section 473H.10 in the following year.  The 
        application shall be executed and acknowledged in the manner 
        required by law to execute and acknowledge a deed and shall 
        contain at least the following information and such other 
        information as the commissioner deems necessary: 
           (a) Legal description of the area proposed to be designated 
        and parcel identification numbers if so designated by the county 
        auditor and the certificate of title number if the land is 
        registered; 
           (b) Name and address of owner; 
           (c) An affidavit by the authority evidencing that the land 
        is certified long term agricultural land at the date of 
        application; 
           (d) A witnessed signature of statement by the owner 
        covenanting that the land shall be kept in agricultural use, and 
        shall be used in accordance with the provisions of sections 
        473H.02 to 473H.17 which exist on the date of application; and 
        providing 
           (e) A statement that the restrictive covenant shall be 
        binding on the owner or the owner's successor or assignee, and 
        shall run with the land.  
           Sec. 10.  Minnesota Statutes 1998, section 473H.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION.] Upon receipt of an 
        application, the authority shall determine if all material 
        required in section 473H.05 has been submitted and, if so, shall 
        determine that the application is complete.  When used in this 
        chapter, the term "date of application" means the date the 
        application is determined complete by the authority.  Within 
        five days of the date of application, the authority shall 
        forward the completed and signed application to the county 
        recorder, together with the owner's duplicate certificate of 
        title in the case of registered property, and copies to the 
        county auditor, the county assessor, the metropolitan council, 
        and the county soil and water conservation district.  
           Sec. 11.  Minnesota Statutes 1998, section 473H.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RECORDING; MEMORIALIZATION.] The county recorder 
        shall record the application containing the restrictive covenant 
        and return it to the applicant.  If the property land is 
        registered property, the recorder registrar of titles shall 
        memorialize the application containing the restrictive covenant 
        upon presentation of the owner's duplicate the certificate of 
        title.  The authority shall be notified by the recorder or 
        registrar of titles that the covenant application has been 
        recorded or memorialized.  
           Sec. 12.  Minnesota Statutes 1998, section 473H.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NOTICE TO OTHERS.] Upon receipt of the notice 
        provided in subdivision 2, or upon notice served by the 
        authority as provided in subdivision 3, the authority shall 
        forward the original notice to the county recorder for 
        recording, or to the registrar of titles if the land is 
        registered, and shall notify the county auditor, county 
        assessor, the metropolitan council, and the county soil and 
        water conservation district of the date of expiration.  
        Designation as an agricultural preserve and all benefits and 
        limitations accruing through sections 473H.02 to 473H.17 for the 
        preserve shall cease on the date of expiration.  The restrictive 
        covenant filed with contained in the application shall terminate 
        on the date of expiration.  
           Sec. 13.  Minnesota Statutes 1998, section 508.14, is 
        amended to read: 
           508.14 [SURVEY IN CERTAIN COUNTIES.] 
           In any county of this state having more than 200,000 
        inhabitants, the county surveyor thereof shall, at the request 
        of the examiner of titles for such county, make a survey of the 
        plat described in any application for registration under this 
        chapter, and file with the court administrator of the district 
        court of such county a plat of such land, duly certified, 
        showing the dimensions of the land, the location of all 
        structures, fences, and other improvements thereon and such 
        other facts as may be required by the examiner.  The surveyor 
        shall also at the request of the registrar of titles of such 
        county, make a survey of any registered land designated by the 
        registrar and file with such registrar a plat of such land, duly 
        certified showing its dimensions and such other facts as the 
        registrar may require. Such plat shall be numbered and entered 
        as a memorial on the original owner's duplicate certificate of 
        title of such land and transferred with each subsequent 
        certificate of title affecting such land.  In any county in 
        which the county surveyor receives fees in lieu of a salary, the 
        county surveyor shall be paid such compensation for services as 
        the county board may determine; in all other counties, the 
        county surveyor shall receive no other compensation than the 
        salary paid for other county work.  
           Sec. 14.  Minnesota Statutes 1998, section 508.24, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PETITION; NONMETROPOLITAN COUNTIES.] The 
        registered owner of land in counties not containing a city of 
        the first class may apply by verified petition to the district 
        court of the county wherein the land is situated for its 
        withdrawal from registration.  The application shall be heard by 
        the district court on not less than 20 days' written notice to 
        all persons appearing of record or known to the petitioner to 
        have or claim an interest in the property.  The notice shall be 
        served in the manner provided by law for the service of a 
        summons in a civil action in the district court unless otherwise 
        specified by the court.  At the hearing any person interested in 
        any manner in the land or who may be affected by its withdrawal 
        from registration, may appear and be heard in favor of or in 
        opposition to the application.  After hearing the court may 
        order that the land be withdrawn from registration, subject to 
        encumbrances, liens, and other incidents of title then existing, 
        and if so ordered shall require that a certified copy of the 
        order, a certified copy of the original decree of registration, 
        and certified copies of all undischarged instruments 
        memorialized on the certificate of title, be recorded in the 
        office of the county recorder at the expense of the petitioner.  
        In its order the court shall reconcile any differences in 
        description of the land as originally registered and as 
        described in the last certificate of title.  Upon the recording 
        of the instruments and upon filing a certified copy of the order 
        in the office of the registrar of titles, and surrender to the 
        registrar of the duplicates of the last certificate of title, 
        the land shall be withdrawn from registration and become 
        unregistered property.  
           Sec. 15.  Minnesota Statutes 1998, section 508.25, is 
        amended to read: 
           508.25 [RIGHTS OF PERSON HOLDING CERTIFICATE OF TITLE.] 
           Every person receiving a certificate of title pursuant to a 
        decree of registration and every subsequent purchaser of 
        registered land who receives a certificate of title in good 
        faith and for a valuable consideration shall hold it free from 
        all encumbrances and adverse claims, excepting only the estates, 
        mortgages, liens, charges, and interests as may be noted in the 
        last certificate of title in the office of the registrar, and 
        also excepting any of the following rights or encumbrances 
        subsisting against it, if any: 
           (1) liens, claims, or rights arising or existing under the 
        laws or the constitution of the United States, which this state 
        cannot require to appear of record; 
           (2) the lien of any real property tax or special assessment 
        for which the land has not been sold 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 thereunder; 
           (4) all rights in public highways upon the land; 
           (5) the right of appeal, or right to appear and contest the 
        application, as is allowed by this chapter; 
           (6) the rights of any person in possession under deed or 
        contract for deed from the owner of the certificate of title; 
        and 
           (7) any outstanding mechanics lien rights which may exist 
        under sections 514.01 to 514.17. 
           No existing or future lien for state taxes arising under 
        the laws of this state for the nonpayment of any amounts due 
        under chapter 268 or any tax administered by the commissioner of 
        revenue may encumber title to lands registered under this 
        chapter unless filed under the terms of this chapter.  
           Sec. 16.  Minnesota Statutes 1998, 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 whether the 
        owner is 18 years of age or older and, if under 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................, 
        ....... 
                                  REGISTRATION 
          State of Minnesota               )                      
                                           )  ss.                 
          County of ....................   )                      
           This is to certify that ..............., 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/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 
        ..........., ..........  
           .............................................  
           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. 17.  Minnesota Statutes 1998, section 508.36, is 
        amended to read: 
           508.36 [CERTIFICATES AND COPIES AS EVIDENCE.] 
           The original certificate of title in the register of 
        titles, any copy of it duly certified by the registrar, or by a 
        deputy, and authenticated by the registrar's seal, and likewise 
        the owner's duplicate certificate of title shall be received in 
        evidence in all the courts of this state and be conclusive 
        evidence of all matters and things contained in it.  In case of 
        variance between the owner's duplicate certificate and the 
        original certificate of title, the original certificate shall 
        prevail.  Deeds, mortgages, leases, or other conveyances of real 
        estate, and all instruments in any manner affecting the title to 
        registered land, together with any notations, endorsements, or 
        memorials upon the same made by the registrar of titles, as 
        required by law, heretofore or hereafter filed with the 
        registrar, shall be received in evidence in all the courts of 
        this state, without further or other proof, and be prima facie 
        evidence of the contents of it.  Duly authenticated copies of 
        these instruments, or any of them, may likewise be received in 
        evidence in any court in this state with like force and effect 
        as the original instruments. 
           Sec. 18.  Minnesota Statutes 1998, section 508.38, is 
        amended to read: 
           508.38 [FORMS OF RECORDS ADOPTED.] 
           Every instrument Instruments affecting the title to land, 
        filed with the registrar, shall be numbered by the registrar 
        consecutively, to the extent practicable and the registrar shall 
        endorse upon the same each instrument over the registrar's 
        official signature, OFFICE OF THE REGISTRAR OF TITLES, ... 
        COUNTY, MINNESOTA, CERTIFIED FILED ON, together with the date, 
        hour, and minute when the same instrument is filed, the document 
        number thereof, and a reference to its the 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 shall 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.  Instruments shall then be 
        returned in person or by mail to the party who presented the 
        instruments for filing or to any other party to whom the 
        registrar is directed to deliver the instruments.  When the 
        memorial of any instrument is made upon any certificate, the 
        date, number, and time of filing thereof shall likewise also be 
        endorsed upon such the 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 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. 19.  Minnesota Statutes 1998, section 508.40, is 
        amended to read: 
           508.40 [OWNER'S DUPLICATE RECEIPT COPY OF CERTIFICATE OF 
        TITLE TO BE FURNISHED TO OWNER.] 
           At the time the original When a certificate of title is 
        entered, the registrar shall make a duplicate thereof, endorsing 
        across the face of such duplicate the words "Owner's Duplicate 
        Certificate" copy of it and deliver the same copy to the owner 
        or an authorized attorney agent.  The registrar shall, in every 
        case, when it is practicable so to do, take from such owner a 
        receipt for such duplicate certificate, which shall be signed by 
        the owner in person.  In the case of multiple owners the receipt 
        may be executed by any one of such owners.  Such receipt, when 
        signed and delivered in the office of the registrar, shall be 
        witnessed by the registrar or the registrar's deputy.  If such 
        receipt is signed elsewhere, it shall be acknowledged in the 
        same manner as a deed.  Such receipt shall be prima facie 
        evidence of the genuineness of such signature.  The copy need 
        not be presented or surrendered to permit an instrument, 
        voluntary or otherwise, to be filed or a new certificate of 
        title to be entered, or a memorial to be made on a certificate 
        of title. 
           Sec. 20.  Minnesota Statutes 1998, section 508.421, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MULTIPLE PARCELS OR INTERESTS.] The owner or 
        owners of registered land holding (1) one certificate of title 
        for two or more parcels of land or (2) one certificate for 
        undivided interests in one or more parcels of land may surrender 
        the owner's duplicate certificate of title for the land and 
        thereupon request the registrar may to issue separate 
        certificates of title to each owner or for each parcel or any 
        combination thereof as may be desired consistent with their 
        registered interests, provided a registered land survey is not 
        required by section 508.47.  When the registrar of titles has 
        issued more than one certificate of title to one or more owners 
        for one or more parcels of land, the owner or owners 
        may surrender the owner's duplicate certificates of title for 
        the land and thereupon request the registrar may to issue a 
        single certificate of title for all of the land to the owner or 
        owners of the land, or the registrar may issue two or more 
        certificates to the owner or owners of the land or for each 
        parcel or any combination thereof as may be desired consistent 
        with their registered interests, provided a registered land 
        survey is not required by section 508.47. 
           Sec. 21.  Minnesota Statutes 1998, section 508.47, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SURVEY; REQUISITES; FILING; COPIES.] The 
        registered land survey shall correctly show the legal 
        description of the parcel of unplatted land represented by said 
        registered land survey and the outside measurements of the 
        parcel of unplatted land and of all tracts delineated therein, 
        the direction of all lines of said tracts to be shown by angles 
        or bearings or other relationship to the outside lines of said 
        registered land survey, and the surveyor shall place monuments 
        in the ground at appropriate corners, and all tracts shall be 
        lettered consecutively beginning with the letter "A."  A 
        registered land survey which delineates multilevel tracts shall 
        include a map showing the elevation view of the tracts with 
        their upper and lower boundaries defined by elevations 
        referenced to National Geodetic Vertical Datum, 1929 
        adjustment.  None of said tracts or parts thereof may be 
        dedicated to the public by said registered land survey.  Except 
        in counties having microfilming capabilities, a reproduction 
        copy of the registered land survey shall be delivered to the 
        county auditor.  The registered land survey shall be on paper, 
        mounted on cloth, shall be a black on white drawing, the scale 
        to be not smaller than one inch equals 200 feet, and shall be 
        certified to be a correct representation of said parcel of 
        unplatted land by a registered surveyor.  The mounted drawing 
        shall be exactly either 17 inches by 14 inches or at the 
        registrar's request 20 inches by 30 inches and not less than 
        2-1/2 inches of the 14 inches or the 20 inches shall be blank 
        for binding purposes, and such survey shall be filed in 
        triplicate with the registrar of titles.  Before filing, 
        however, any such survey shall be approved in the manner 
        required for the approval of subdivision plats, which approval 
        shall be endorsed thereon on it or attached thereto to it. 
           At the time of filing, a certificate from the treasurer 
        that current taxes have been paid must be presented before the 
        survey is accepted by the registrar for filing.  
           In counties having microfilming capabilities, the survey 
        may be prepared on sheets of suitable mylar or on linen tracing 
        cloth by photographic process or on material of equal quality.  
        Notwithstanding any provisions of subdivision 5 to the contrary, 
        no other copies of the survey need be filed. 
           The registrar shall duly certify and furnish to any person 
        a copy of said registered land survey, which shall be admissible 
        in evidence.  
           Sec. 22.  Minnesota Statutes 1998, section 508.49, is 
        amended to read: 
           508.49 [INTEREST LESS THAN FEE; NOTICED BY MEMORIAL.] 
           No new certificate shall be issued upon any transfer of 
        registered land which does not divest the title in fee simple of 
        the land, or some part of it.  All interests in registered land, 
        less than an estate in fee simple, shall be registered by filing 
        with the registrar the instrument which creates, transfers, or 
        claims the interest, and by brief memorandum or memorial of it 
        made and signed by the registrar upon the certificate of title.  
        A similar memorandum shall also be made on the owner's duplicate 
        if practicable so to do.  The cancellation of the interests 
        shall be registered in the same manner.  
           Sec. 23.  Minnesota Statutes 1998, section 508.51, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IF VOLUNTARY INSTRUMENT; EXCEPTION:  COURT 
        ORDER.] Except as provided in subdivision 2, 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 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 shall 
        enter a new certificate or to make a memorial of registration in 
        accordance with such instrument, and the new certificate of 
        title 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. 24.  Minnesota Statutes 1998, section 508.52, is 
        amended to read: 
           508.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF NEW 
        CERTIFICATE CANCELED; NEW ISSUED.] 
           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 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 
        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 of title.  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 and prepare and deliver to 
        the grantee a copy of the new certificate of title.  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 copy of 
        their respective certificates of title.  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. 25.  Minnesota Statutes 1998, section 508.55, is 
        amended to read: 
           508.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 
        CERTIFICATE OF TITLE.] 
           The registration of a mortgage made by the registered owner 
        or, the registered owner's attorney-in-fact, or 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, shall be made in the following manner:  
        The owner's duplicate certificate mortgage deed or other 
        instrument to be registered 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. 26.  Minnesota Statutes 1998, section 508.56, is 
        amended to read: 
           508.56 [ASSIGNMENT AND DISCHARGE OF MORTGAGE.] 
           When a mortgage is assigned, extended, or otherwise dealt 
        with, a memorial of the instrument shall be made upon the 
        original certificate of title.  In case only a part of the 
        mortgage upon the land is intended to be released or discharged 
        a memorial of such partial release shall be entered.  
           Sec. 27.  Minnesota Statutes 1998, section 508.57, is 
        amended to read: 
           508.57 [FORECLOSURE; NOTICE.] 
           Mortgages upon registered land may be foreclosed in the 
        same manner as mortgages upon unregistered land.  Where the 
        mortgage is upon registered land it shall be sufficient to 
        authorize the foreclosure thereof by advertisement, if such 
        mortgage and all assignments thereof shall have been registered, 
        and a memorial thereof duly entered upon the certificate of 
        title.  When a mortgage upon registered land is foreclosed by 
        advertisement, the notice of foreclosure shall state the date of 
        the mortgage, when and where registered, and the fact of 
        registration.  All laws relating to the foreclosure of mortgages 
        upon unregistered land shall apply to mortgages upon registered 
        land, or any estate or interest therein, except as herein 
        provided, and except that a notice of the pendency of any suit 
        or proceeding to enforce or foreclose the mortgage or other 
        charge upon the land shall be filed with the registrar, and a 
        memorial thereof entered on the register certificate of title 
        before the first date of publication of the foreclosure notice 
        but not sooner than six months before the first date of 
        publication.  A notice so filed and registered shall be notice 
        to the registrar and to all persons thereafter dealing with the 
        land or any part thereof and shall satisfy the requirements of 
        section 580.032, subdivision 3, with respect to registered 
        land.  In all such foreclosures all certificates and affidavits 
        permitted or required by law to be recorded with the county 
        recorder shall be filed with and registered by the registrar. 
           Sec. 28.  Minnesota Statutes 1998, section 508.58, is 
        amended to read: 
           508.58 [REGISTRATION AFTER FORECLOSURE; NEW CERTIFICATE.] 
           Subdivision 1.  [COURT ORDER.] Any person who has, by an 
        action or other proceeding to enforce or foreclose a mortgage, 
        lien, or other charge upon registered land, become the owner in 
        fee of the land, or any part thereof, may have the title 
        registered.  Except as provided in subdivision 2, the owner 
        shall apply by duly verified petition to the court for a new 
        certificate of title to such land, and the court shall 
        thereupon, after due notice to all parties in interest and upon 
        such hearing as the court may direct, make an order for the 
        issuance of a new certificate of title to the person entitled 
        thereto, and the registrar shall thereupon enter a new 
        certificate of title to the land, or of the part thereof to 
        which the petitioner is entitled, and issue an owner's duplicate 
        as in the case of a voluntary conveyance.  
           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 the 
        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. 
           Sec. 29.  Minnesota Statutes 1998, section 508.59, is 
        amended to read: 
           508.59 [REGISTRATION OF JUDGMENT OR FINAL DECREE.] 
           A judgment or decree affecting registered land shall be 
        registered upon the presentation of a certified copy thereof to 
        the registrar, who shall enter a memorial thereof upon the 
        original certificate of title and upon the owner's duplicate, if 
        practicable so to do.  When the registered owner of such land is 
        by such judgment or decree divested of an estate in fee therein, 
        or of any part thereof, the prevailing party shall be entitled 
        to a new certificate of title for the land, or so much thereof 
        as may be described in the judgment and decree, and the 
        registrar shall enter such new certificate of title and issue a 
        new owner's duplicate certificate as in the case of a voluntary 
        conveyance.  No such new certificate shall be entered except 
        upon the written certification of the examiner of titles as to 
        the legal sufficiency of the documents presented for filing for 
        the purpose of issuance of a new certificate or upon the order 
        of the district court directing the issuance thereof. 
           Sec. 30.  Minnesota Statutes 1998, section 508.61, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NEW TRUSTEE.] When a new trustee of registered 
        land is appointed a new certificate of title shall be entered in 
        the new trustee's name upon presentation to the registrar of a 
        certified copy of the decree or other instrument appointing the 
        new trustee and the surrender of the owner's duplicate 
        certificate.  
           Sec. 31.  Minnesota Statutes 1998, section 508.61, 
        subdivision 3, is amended to read: 
           Subd. 3.  [VOLUNTARY DISSOLUTION.] Where a corporate owner 
        did adopt a resolution for voluntary dissolution pursuant to 
        chapter 301, the registrar of titles shall enter a new 
        certificate of title in the name of the trustee in dissolution 
        upon the surrender of the owner's duplicate certificate and the 
        presentation of a certified copy of the certificate setting 
        forth the adoption of the resolution together with the 
        certificate of the secretary of state that said certificate of 
        dissolution has been filed for record in the secretary's office. 
           Sec. 32.  Minnesota Statutes 1998, section 508.67, is 
        amended to read: 
           508.67 [ACQUIRING TITLE BY ACTION; NEW CERTIFICATE.] 
           Subdivision 1.  [COURT ORDER.] Upon the expiration of the 
        time allowed by law for redemption of registered land, after it 
        has been set off, or sold on execution, or taken or sold for the 
        enforcement of any lien, or charge of any nature, the person who 
        claims under such execution, or under any certificate, deed, or 
        other instrument made in the course of proceedings to enforce 
        such execution or lien, may apply to the court for an order 
        directing the entry of a new certificate to that person, and 
        upon such notice as the court may require, the petition shall be 
        heard and a proper order rendered therein.  In case the claim of 
        title is based upon a tax certificate, tax or assessment deed, 
        the petition shall be filed with the court administrator, who 
        shall docket the same in the land registration docket.  The 
        petition shall be referred to the examiner of titles for 
        examination and report in like manner as herein provided for the 
        reference of initial applications for registration.  The summons 
        shall be issued in the form and served in the manner as in 
        initial applications.  The petition shall be heard by the court 
        and the petitioner shall be required to show affirmatively that 
        all the requirements of the statute to entitle the petitioner to 
        register the title have been complied with.  The order shall 
        show the condition of the title to such land and who is the 
        owner thereof.  It shall provide, if the petitioner is found to 
        be the owner, for the cancellation of the outstanding 
        certificate of title and the registrar shall issue a new 
        certificate of title for the land in lieu and in place of the 
        outstanding certificate upon presentation to the registrar of a 
        duly certified copy of such order, according to its terms.  
           Subd. 2.  [EXAMINER OF TITLES DIRECTIVE.] Any person 
        holding title to registered land pursuant to forfeiture 
        evidenced by a county auditor's certificate of forfeiture, or 
        auditor's certificate of sale or state assignment certificate 
        that has been memorialized upon a certificate of title for at 
        least ten years is entitled to a new certificate of title for 
        the land, or so much of the land as may be described in the 
        forfeiture documents.  The registrar shall enter the new 
        certificate of title and issue a new owner's duplicate 
        certificate only pursuant to court order or upon the written 
        directive of the examiner of titles as to the legal sufficiency 
        of the forfeiture.  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 forfeiture. 
           Sec. 33.  Minnesota Statutes 1998, 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 thereupon the registrar shall cancel the 
        certificate of title issued to the testator and issue a new 
        certificate of title 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, and thereupon the 
        registrar shall cancel the certificate of title issued to the 
        intestate and issue a new certificate of title 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. 34.  Minnesota Statutes 1998, section 508.71, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [CORRECTIONS OF REGISTRAR'S CLERICAL 
        ERRORS.] The registrar may correct clerical errors or omissions 
        made by the registrar's staff in producing certificates of 
        title.  An error shall not be erased or obliterated.  The 
        registrar may sign and file a correction document and 
        memorialize it upon the affected certificate of title, or may 
        make a correction memorial without a correction document.  The 
        memorial shall show the date, time of entry, the nature of the 
        error or omission, and the correct information.  If the error or 
        omission may adversely affect the interest of a party, the 
        registrar shall refer the correction to the examiner of titles.  
        The registrar shall prepare subsequent certificates correctly 
        and omit the memorial of the correction. 
           Sec. 35.  Minnesota Statutes 1998, section 508.71, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COURT ORDER.] A registered owner or other person 
        in interest may, at any time, apply by petition to the court, 
        upon the ground that (1) registered interests of any 
        description, whether vested, contingent, expectant, or inchoate, 
        have terminated and ceased; (2) new interests have arisen or 
        been created which do not appear upon the certificate of title; 
        (3) any error or omission was made in entering a certificate of 
        title or any memorial thereon, or on any duplicate certificate; 
        (4) the name of any person on the certificate of title has been 
        changed; (5) the registered owner has married, or, if registered 
        as married, that the marriage has been terminated; (6) a 
        corporation which owned registered land and has been dissolved 
        has not conveyed it within three years after its dissolution; or 
        (7), upon any reasonable ground, that any other alteration or 
        adjudication should be made.  The court may hear and determine 
        the petition after notice given to all parties in interest, as 
        determined by the examiner of titles, by a summons issued in the 
        form and served in the manner as in initial applications or by 
        an order to show cause, as the court may deem appropriate.  
        After notice has been given as ordered, the court may order the 
        entry of a new certificate of title, the entry, amendment, or 
        cancellation of a memorial upon a certificate of title, or grant 
        any other relief upon the terms, requiring security if 
        necessary, as it may consider proper.  The provisions of this 
        section shall not give the court authority to open the original 
        decree of registration, and nothing shall be done or ordered by 
        the court which shall impair the title or other interest of a 
        purchaser who holds a certificate of title for value and in good 
        faith, or of the purchaser's heirs or assigns without written 
        consent of the purchaser or heirs or assigns.  A certified copy 
        of the petition may be filed as a memorial on any appropriate 
        certificate of title which shall be notice forever to purchasers 
        and encumbrancers of the pendency of the proceeding and all 
        matters referred to in the court files and records pertaining to 
        the proceeding.  
           Sec. 36.  Minnesota Statutes 1998, 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 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 of 
        title 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 of title, the registrar shall give 
        full faith to these memorials.  
           Sec. 37.  Minnesota Statutes 1998, section 508.71, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SURVIVORSHIP.] In case of a certificate of title 
        outstanding to two or more owners as joint tenants, upon the 
        filing for registration of a certificate of death of one of the 
        joint tenants and an affidavit of survivorship, and upon the 
        surrender of the owner's duplicate certificate of title, the 
        registrar without the order or directive shall issue a new 
        certificate of title for the premises to the survivor in 
        severalty or to the survivors in joint tenancy as the case may 
        be.  
           Sec. 38.  Minnesota Statutes 1998, section 508.71, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RECORDED INSTRUMENTS.] When instruments 
        affecting registered land have been recorded in the office of 
        any county recorder in this state, a certified copy thereof may 
        be filed for registration and registered with like effect as the 
        original instrument without the order or directive.  The owner's 
        duplicate certificate of title shall be presented to the 
        registrar, together with the certified copy, whenever the 
        presentation is required by statute for registration of the 
        original instrument. 
           Sec. 39.  Minnesota Statutes 1998, section 508.76, is 
        amended to read: 
           508.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION; 
        ACTION REGISTRAR'S LIABILITY.] 
           Subdivision 1.  [COMPENSATION FOR LOSS OR DAMAGE.] Any 
        person who, without negligence on that person's part, sustains 
        any loss or damage by reason of any omission, mistake or 
        misfeasance of the registrar or the registrar's deputy, or of 
        any examiner or of any court administrator, or of a deputy of 
        the court administrator or examiner, in the performance of their 
        respective duties under this law, and any person who, without 
        negligence on that person's part, is wrongfully deprived of any 
        land or of any interest therein by the registration thereof, or 
        by reason of the registration of any other person, as the owner 
        of such land, or by reason of any mistake, omission, or 
        misdescription in any certificate of title, or in any entry or 
        memorial, or by any cancellation, in the register of titles, and 
        who, by the provisions of this law, is precluded from bringing 
        an action for the recovery of such land, or of any interest 
        therein, or from enforcing any claim or lien upon the same, may 
        institute an action in the district court to recover 
        compensation out of the general fund for such loss or damage.  
           Subd. 2.  [DOCUMENTS MISFILED.] The registrar may 
        reasonably rely on the affirmative representation of the party 
        presenting instruments for filing as to whether the land 
        described in the instruments or any part of it is registered or 
        unregistered.  A party who requests that misfiled instruments be 
        refiled with the registrar is responsible for paying any 
        additional fees required to properly file any instrument 
        misfiled because of an incorrect representation and, if 
        applicable, to enter a new certificate of title. 
           Sec. 40.  Minnesota Statutes 1998, section 508.82, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
        to the registrar shall be as follows: 
           (1) of the fees provided herein, five percent of the fees 
        collected under clauses (3), (4), (10), (12), (13), (14), (15), 
        and (16), (17), and (18), for filing or memorializing shall be 
        paid to the state treasurer and credited to the general fund; 
        plus a $4.50 surcharge shall be charged and collected in 
        addition to the total fees charged for each transaction under 
        clauses (2) to (5), (10), (12), (14), and (18) (16), with 50 
        cents of this surcharge to be retained by the county to cover 
        its administrative costs and $4 to be paid to the state treasury 
        and credited to the general fund; 
           (2) for registering each original a first certificate of 
        title, and including issuing a duplicate copy of it, $30; 
           (3) for registering each instrument transferring the fee 
        simple title for which a new certificate of title is issued and 
        for the issuance and registration of the new certificate of 
        title, including a copy of it, $30; 
           (4) for the entry of each memorial on a certificate and 
        endorsements upon duplicate certificates, $15; 
           (5) for issuing each residue certificate, $20; 
           (6) for exchange certificates, $10 for each certificate 
        canceled and $10 for each new certificate issued; 
           (7) for each certificate showing condition of the register, 
        $10; 
           (8) for any certified copy of any instrument or writing on 
        file in the registrar's office, the same fees allowed by law to 
        county recorders for like services; 
           (9) for a noncertified copy of any certificate of title, 
        other than the copies issued under clauses (2) and (3) of this 
        subdivision, any instrument or writing on file in the office of 
        the registrar of titles, or any specified page or part of it, an 
        amount as determined by the county board for each page or 
        fraction of a page specified.  If computer or microfilm printers 
        are used to reproduce the instrument or writing, a like amount 
        per image; 
           (10) for filing two copies of any plat in the office of the 
        registrar, $30; 
           (11) for any other service under this chapter, such fee as 
        the court shall determine; 
           (12) for issuing a duplicate certificate of title pursuant 
        to the directive of the examiner of titles in counties in which 
        the compensation of the examiner is paid in the same manner as 
        the compensation of other county employees, $50, plus $10 to 
        memorialize; 
           (13) for issuing a duplicate certificate of title pursuant 
        to the directive of the examiner of titles in counties in which 
        the compensation of the examiner is not paid by the county or 
        pursuant to an order of the court, $10; 
           (14) (12) for filing a condominium plat or an amendment to 
        it in accordance with chapter 515, $30; 
           (15) (13) for a copy of a condominium plat filed pursuant 
        to chapters 515 and 515A, the fee shall be $1 for each page of 
        the condominium plat with a minimum fee of $10; 
           (16) (14) for filing a condominium declaration and plat or 
        an amendment to it in accordance with chapter 515A, $10 for each 
        certificate upon which the document is registered and $30 for 
        the filing of the condominium plat or an amendment thereto; 
           (17) (15) for the filing of a certified copy of a plat of 
        the survey pursuant to section 508.23 or 508.671, $10; 
           (18) (16) for filing a registered land survey in triplicate 
        in accordance with section 508.47, subdivision 4, $30; 
           (19) (17) for furnishing a certified copy of a registered 
        land survey in accordance with section 508.47, subdivision 4, 
        $10. 
           Sec. 41.  Minnesota Statutes 1998, section 508A.10, is 
        amended to read: 
           508A.10 [APPLICATION TO EXAMINER; POWERS OF EXAMINER.] 
           An application for registration for a CPT shall be 
        addressed to the examiner of titles in and for the county in 
        which the land described is situated.  The examiner shall have 
        the powers provided in sections 508A.01 to 508A.85 including but 
        not limited to the following:  
           (1) To approve all applications prior to filing of record; 
           (2) To require an abstract of title with searches and 
        recertifications as desired; 
           (3) To require that mailed notice be given to the holders 
        of any interest, when their addresses are known; 
           (4) To issue examiner's reports, supplemental reports, 
        initial directives, and supplemental directives to the registrar 
        regarding initial CPTs, owner's duplicates pursuant to section 
        508A.44 or memorials upon any CPT pursuant to section 508A.71; 
           (5) To require the county surveyor to review the proposed 
        legal description of any CPT or to inspect the real property; 
           (6) To suspend any proceeding hereunder upon receipt of any 
        valid written objections by persons claiming an interest in the 
        real property; and 
           (7) To require proceedings subsequent to the initial CPT as 
        may be necessary to achieve the purposes of sections 508A.01 to 
        508A.85, or to certify instruments transferring title pursuant 
        to sections 508A.59, 508A.62, and 508A.69. 
           Sec. 42.  Minnesota Statutes 1998, section 508A.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEES.] Before the examiner of titles examines 
        the abstract of title, the applicant shall pay to the registrar 
        of titles the fee provided by section 508A.82, clause (17) (15). 
           Sec. 43.  Minnesota Statutes 1998, section 508A.22, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SUPPLEMENTAL DIRECTIVE.] When the directive has 
        been issued pursuant to subdivision 1, the abstract of title 
        shall be continued through the date the directive was filed with 
        the registrar of titles and then delivered to the examiner.  On 
        determining that the applicant is the record owner after an 
        examination of the continued abstract and the public records, 
        the examiner shall issue a supplemental directive to the 
        registrar of titles directing the registrar to show by memorial 
        that the five year statute of limitations provided by section 
        508A.17 will begin on the date the supplemental directive is 
        filed on the CPT, to show as memorials any additional liens, 
        encumbrances, or other interests affecting the land, and to 
        delete the memorials of any liens, encumbrances or other 
        interests which were satisfied, released or discharged prior to 
        the issuance of the CPT.  The supplemental directive of the 
        examiner shall then be filed as a memorial upon the CPT.  Each 
        additional lien, encumbrance, or other interest noted in the 
        supplemental directive shall be shown as a separate memorial on 
        the CPT in addition to the memorial of the supplemental 
        directive.  The abstract of title shall be delivered to the 
        registrar of titles who shall retain it, but it shall not be 
        entered as a memorial on the CPT.  Until the abstract of title 
        has been delivered to the registrar of titles, the registrar 
        shall not deliver the owner's duplicate CPT to the registered 
        owner nor accept for filing any instrument executed by the 
        registered owner.  
           Sec. 44.  Minnesota Statutes 1998, section 508A.22, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEES.] Upon the filing with the registrar of 
        titles of the examiner's directive pursuant to subdivision 1, 
        there shall be paid to the registrar:  (1) the fee provided by 
        section 508A.82, clause (2), for registering an original a first 
        CPT, and (2) the fee provided by section 508.74, which shall be 
        paid to the state treasurer pursuant to section 508.75.  Upon 
        filing with the registrar of titles the supplemental directive 
        of the examiner, there shall be paid to the registrar of titles 
        the fee for the entry of a memorial pursuant to section 508A.82, 
        clause (4).  
           Sec. 45.  Minnesota Statutes 1998, section 508A.25, is 
        amended to read: 
           508A.25 [RIGHTS OF PERSON HOLDING CPT.] 
           Every person holding a CPT issued pursuant to sections 
        508A.01 to 508A.85 who has acquired title in good faith and for 
        a valuable consideration shall hold the same free from all 
        encumbrances and adverse claims, excepting only estates, 
        mortgages, liens, charges, and interests as may be noted by 
        separate memorials in the latest CPT in the office of the 
        registrar, and also excepting the memorial provided in section 
        508A.351 and any of the following rights or encumbrances 
        subsisting against the same, if any:  
           (1) liens, claims, or rights arising or existing under the 
        laws or the constitution of the United States, which this state 
        cannot require to appear of record; 
           (2) the lien of any real property tax or special assessment 
        for which the land has not been sold 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 it; 
           (4) all rights in public highways upon the land; 
           (5) the rights of any person in possession under deed or 
        contract for deed from the owner of the CPT; 
           (6) any liens, encumbrances, and other interests that may 
        be contained in the examiner's supplemental directive issued 
        pursuant to section 508A.22, subdivision 2; 
           (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.  
           No existing or future lien for state taxes arising under 
        the laws of this state for the nonpayment of any amounts due 
        under chapter 268 or any tax administered by the commissioner of 
        revenue may encumber title to lands registered under this 
        chapter unless filed under the terms of this chapter. 
           Sec. 46.  Minnesota Statutes 1998, 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 whether the owner is 18 
        years of age or older and if under 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 .................., ..... 
                        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 
        ...................., ..... 
        ...................................
                                  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.  
           Sec. 47.  Minnesota Statutes 1998, section 508A.38, is 
        amended to read: 
           508A.38 [FORMS OF RECORDS ADOPTED.] 
           Every instrument Instruments affecting the title to land, 
        filed with the registrar pursuant to sections 508A.01 to 
        508A.85, shall be numbered consecutively by the registrar who to 
        the extent practicable and the registrar shall endorse upon the 
        same each instrument over the registrar's official signature, 
        OFFICE OF THE REGISTRAR OF TITLES, ... COUNTY, MINNESOTA, 
        CERTIFIED AND FILED ON, together with the date, hour, and minute 
        when the same instrument is filed, the document number thereof, 
        and a reference to its the proper CPT.  Every instrument shall 
        be retained by the registrar and regarded as registered from the 
        time of filing except that the Instruments may shall 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 as amended.  Instruments 
        shall then be returned in person or by mail to the party who 
        presented the instruments for filing or to any other party to 
        whom the registrar is directed to deliver the instruments.  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 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 them.  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. 48.  Minnesota Statutes 1998, section 508A.40, is 
        amended to read: 
           508A.40 [OWNER'S DUPLICATE RECEIPT COPY OF CPT TO BE 
        FURNISHED TO OWNER.] 
           At the time the first When a CPT is entered, the registrar 
        shall make a duplicate of it, endorsing across the face of the 
        duplicate the words "Owner's Duplicate CPT" copy of it and 
        deliver it to the owner or the owner's authorized attorney 
        agent.  The registrar shall, in every case, when it is 
        practicable so to do, take from the owner a receipt for the 
        duplicate CPT, which shall be signed by the owner in person.  In 
        the case of multiple owners the receipt may be executed by any 
        one of the owners.  The receipt, when signed and delivered in 
        the office of the registrar, shall be witnessed by the registrar 
        or the registrar's deputy.  If the receipt is signed elsewhere, 
        it shall be acknowledged in the same manner as a deed.  The 
        receipt shall be prima facie evidence of the genuineness of the 
        signature.  The copy need not be presented or surrendered to 
        permit an instrument, voluntary or otherwise, to be filed or a 
        new CPT to be entered, or a memorial to be made on a CPT. 
           Sec. 49.  Minnesota Statutes 1998, section 508A.421, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MULTIPLE PARCELS OR INTERESTS.] The owner or 
        owners of registered land holding (1) one CPT for two or more 
        parcels of land or (2) one CPT for undivided interests in one or 
        more parcels of land may surrender the owner's duplicate CPT for 
        the land and thereupon the registrar may request the registrar 
        to issue separate CPTs to each owner or for each parcel or any 
        combination thereof as may be desired consistent with their 
        registered interests, provided a registered land survey is not 
        required by section 508A.47. When the registrar of titles has 
        issued more than one CPT to one or more owners for one or more 
        parcels of land, the owner or owners may surrender the owner's 
        duplicate CPT for the land and thereupon the registrar 
        may request the registrar to issue a single CPT for all of the 
        land to the owner or owners of the land, or the registrar may 
        issue two or more CPTs to the owner or owners of the land or for 
        each parcel or any combination thereof as may be desired 
        consistent with their registered interests, provided a 
        registered land survey is not required by section 508A.47.  
           Sec. 50.  Minnesota Statutes 1998, section 508A.47, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SURVEY; REQUISITES; FILING; COPIES.] The 
        registered land survey shall correctly show the legal 
        description of the parcel of unplatted land represented by the 
        registered land survey and the outside measurements of the 
        parcel of unplatted land and of all tracts delineated therein, 
        the direction of all lines of the tracts to be shown by angles 
        or bearings or other relationship to the outside lines of the 
        registered land survey, and the surveyor shall place monuments 
        in the ground at appropriate corners, and all tracts shall be 
        lettered consecutively beginning with the letter "A."  A 
        registered land survey which delineates multilevel tracts shall 
        include a map showing the elevation view of the tracts with 
        their upper and lower boundaries defined by elevations 
        referenced to National Geodetic Vertical Datum, 1929 
        adjustment.  None of the tracts or parts of them may be 
        dedicated to the public by the registered land survey.  Except 
        in counties having microfilming capabilities, a reproduction 
        copy of the registered land survey shall be delivered to the 
        county auditor.  The registered land survey shall be on paper, 
        mounted on cloth, shall be a black on white drawing, the scale 
        to be not smaller than one inch equals 200 feet, and shall be 
        certified to be a correct representation of the parcel of 
        unplatted land by a registered surveyor.  The mounted drawing 
        shall be exactly either 17 inches by 14 inches or at the 
        registrar's request 20 inches by 30 inches and not less than 
        2-1/2 inches of the 14 inches or the 20 inches shall be blank 
        for binding purposes.  The survey shall be filed in triplicate 
        with the registrar of titles.  Before filing, however, any 
        survey shall be approved in the manner required for the approval 
        of subdivision plats, which approval shall be endorsed on it or 
        attached to it.  
           A certificate from the treasurer stating that current taxes 
        have been paid shall be presented at the time of filing before 
        the survey is accepted by the registrar for filing. 
           In counties having microfilming capabilities, the survey 
        may be prepared on sheets of suitable mylar or on linen tracing 
        cloth by photographic process or on material of equal quality. 
        Notwithstanding any provisions of subdivision 5 to the contrary, 
        no other copies of the survey need be filed.  
           The registrar shall duly certify and furnish to any person 
        a copy of the registered land survey.  The copy shall be 
        admissible in evidence.  
           Sec. 51.  Minnesota Statutes 1998, section 508A.49, is 
        amended to read: 
           508A.49 [INTEREST LESS THAN FEE; NOTICED BY MEMORIAL.] 
           No new CPT shall be issued upon any transfer of land 
        registered under sections 508A.01 to 508A.85 which does not 
        divest the title in fee simple of the land, or some part of it.  
        All interests in the registered land, less than an estate in fee 
        simple, shall be registered by filing with the registrar the 
        instrument which creates, transfers, or claims the interest, and 
        by brief memorandum or memorial of it made and signed by the 
        registrar upon the CPT.  A similar memorandum shall also be made 
        on the owner's duplicate if practicable so to do.  The 
        cancellation of interests shall be registered in the same manner.
           Sec. 52.  Minnesota Statutes 1998, section 508A.51, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [IF VOLUNTARY INSTRUMENT; EXCEPTION:  COURT 
        ORDER NEW CPT OR MEMORIAL OF REGISTRATION.] Except as provided 
        in subdivision 2, 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 or the 
        registered owner's attorney-in-fact, unless the owner's 
        duplicate is presented with it, except 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 shall 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.  
           Sec. 53.  Minnesota Statutes 1998, 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 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 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 copy of the 
        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 copy of 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. 
           Sec. 54.  Minnesota Statutes 1998, section 508A.55, is 
        amended to read: 
           508A.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON 
        CERTIFICATE CPT.] 
           The registration of a mortgage made by the registered owner 
        or, the registered owner's attorney-in-fact or by a party who 
        has an interest registered on the CPT other than the registered 
        owner or the registered owner's attorney-in-fact, shall be made 
        in the following manner:  The owner's duplicate CPT mortgage 
        deed or other instrument to be registered 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.  
           Sec. 55.  Minnesota Statutes 1998, section 508A.56, is 
        amended to read: 
           508A.56 [ASSIGNMENT AND DISCHARGE OF MORTGAGE.] 
           When a mortgage is assigned, extended, or otherwise dealt 
        with, a memorial of the instrument shall be made upon the 
        original CPT.  In case only a part of the mortgage upon the land 
        is intended to be released or discharged, a memorial of the 
        partial release shall be entered. 
           Sec. 56.  Minnesota Statutes 1998, section 508A.57, is 
        amended to read: 
           508A.57 [FORECLOSURE; NOTICE.] 
           Mortgages upon land registered under sections 508A.01 to 
        508A.85 may be foreclosed in the same manner as mortgages upon 
        unregistered land.  Where the mortgage is upon registered land 
        it shall be sufficient to authorize the foreclosure of it by 
        advertisement, if the mortgage and all assignments of it have 
        been registered, and a memorial of it duly entered upon the 
        CPT.  When a mortgage upon the registered land is foreclosed by 
        advertisement, the notice of foreclosure shall state the date of 
        the mortgage, when and where registered, and the fact of 
        registration.  All laws relating to the foreclosure of mortgages 
        upon unregistered land shall apply to mortgages upon land 
        registered under sections 508A.01 to 508A.85, or any estate or 
        interest therein, except as herein provided, and except that a 
        notice of the pendency of any suit or proceeding to enforce or 
        foreclose the mortgage or other charge upon the land shall be 
        filed with the registrar, and a memorial of it entered on the 
        register CPT before the first date of publication of the 
        foreclosure notice but not sooner than six months before the 
        first date of publication.  A notice so filed and registered 
        shall be notice to the registrar and to all persons thereafter 
        dealing with the land or any part of it and satisfies the 
        requirements of section 580.032, subdivision 3, with respect to 
        registered land.  In all foreclosures, all certificates and 
        affidavits permitted or required by law to be recorded with the 
        county recorder shall be filed with the registrar who shall 
        register them. 
           Sec. 57.  Minnesota Statutes 1998, section 508A.58, is 
        amended to read: 
           508A.58 [REGISTRATION AFTER FORECLOSURE; NEW CPT.] 
           Subdivision 1.  [COURT ORDER.] Any person who has, by an 
        action or other proceeding to enforce or foreclose a mortgage, 
        lien, or other charge upon land registered under sections 
        508A.01 to 508A.85, become the owner in fee of the land, or any 
        part of it, may have the title registered.  Except as provided 
        in subdivision 2, the person shall apply by duly verified 
        petition to the court for a new CPT to the land, and the court 
        shall then, after due notice to all parties in interest and upon 
        the hearing as the court may direct, make an order for the 
        issuance of a new CPT to the person entitled thereto, and the 
        registrar shall then enter a new CPT to the land, or of the part 
        of it to which the petitioner is entitled, and issue an owner's 
        duplicate as in the case of a voluntary conveyance.  
           Subd. 2.  [EXAMINER OF TITLES DIRECTIVE.] Any person who 
        has become the owner in fee of land registered under sections 
        508A.01 to 508A.85, or any part of the land, pursuant to a 
        mortgage foreclosure by action under chapter 581 is entitled to 
        a new CPT 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 CPT, after the redemption period 
        expires.  The registrar shall enter a new CPT 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 CPT by virtue of the foreclosure. 
           Sec. 58.  Minnesota Statutes 1998, section 508A.59, is 
        amended to read: 
           508A.59 [REGISTRATION OF JUDGMENT OR FINAL DECREE.] 
           A judgment or decree affecting land registered under 
        sections 508A.01 to 508A.85 shall be registered upon the 
        presentation of a certified copy of it to the registrar, who 
        shall enter a memorial of it upon the original CPT and upon the 
        owner's duplicate, if practicable so to do.  When the registered 
        owner of the land is by the judgment or decree divested of an 
        estate in fee in it, or of any part of it, the prevailing party 
        shall be entitled to a new CPT for the land, or so much of it as 
        is described in the judgment and decree.  The registrar shall 
        enter the new CPT and issue a new owner's duplicate CPT as in 
        the case of a voluntary conveyance.  No new CPT shall be entered 
        except upon the written certification of the examiner of titles 
        as to the legal sufficiency of the documents presented for 
        filing for the purpose of issuance of a new CPT or upon the 
        order of the district court directing the issuance of it.  
           Sec. 59.  Minnesota Statutes 1998, section 508A.61, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NEW TRUSTEE.] When a new trustee of land 
        registered under sections 508A.01 to 508A.85 is appointed, a new 
        CPT shall be entered in the new trustee's name upon presentation 
        to the registrar of a certified copy of the decree or other 
        instrument appointing the new trustee and the surrender of the 
        owner's duplicate CPT.  
           Sec. 60.  Minnesota Statutes 1998, section 508A.61, 
        subdivision 3, is amended to read: 
           Subd. 3.  [VOLUNTARY DISSOLUTION.] Where a corporate owner 
        did adopt a resolution for voluntary dissolution pursuant to 
        chapter 301, the registrar of titles shall enter a new CPT in 
        the name of the trustee in dissolution upon the surrender of the 
        owner's duplicate CPT and the presentation of a certified copy 
        of the certificate setting forth the adoption of the resolution 
        together with the certificate of the secretary of state that the 
        certificate of dissolution has been filed for record in the 
        secretary's office.  
           Sec. 61.  Minnesota Statutes 1998, section 508A.71, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [CORRECTIONS OF REGISTRAR'S CLERICAL 
        ERRORS.] The registrar may correct clerical errors or omissions 
        made by the registrar's staff in producing CPTs.  An error shall 
        not be erased or obliterated.  The registrar may sign and file a 
        correction document and memorialize it upon the affected CPT, or 
        may make a correction memorial without a correction document.  
        The memorial shall show the date, time of entry, the nature of 
        the error or omission, and the correct information.  Where the 
        error or omission may adversely affect the interest of any 
        party, the registrar shall refer the correction to the examiner 
        of titles.  The registrar shall prepare subsequent CPTs 
        correctly and omit the memorial of the correction. 
           Sec. 62.  Minnesota Statutes 1998, section 508A.71, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COURT ORDERS.] A registered owner or other 
        person in interest may, at any time, apply by petition to the 
        court, upon the ground that (1) registered interests of any 
        description, whether vested, contingent, expectant, or inchoate, 
        have terminated and ceased; or that (2) new interests have 
        arisen or been created which do not appear upon the CPT; or 
        that (3) any error or omission was made in entering a CPT or any 
        memorial on it, or on any duplicate CPT; or that (4) the name of 
        any person on the CPT has been changed; or that (5) the 
        registered owner has married, or, if registered as married, that 
        the marriage has been terminated; or that (6) a corporation 
        which owned land registered under sections 508A.01 to 508A.85 
        and has been dissolved has not conveyed it within three years 
        after its dissolution; or (7) upon any reasonable ground, that 
        any other alteration or adjudication should be made.  The court 
        may hear and determine the petition after notice given to all 
        parties in interest, as determined by the examiner of titles, by 
        a summons issued in the form and served in the manner as in 
        initial applications pursuant to chapter 508 or by an order to 
        show cause, as the court may deem appropriate.  After notice has 
        been given as ordered, the court may order the entry of a new 
        CPT, the entry, amendment, or cancellation of a memorial upon a 
        CPT, or grant any other relief upon terms, requiring security if 
        necessary, as it may consider proper.  A certified copy of the 
        petition may be filed as a memorial on any appropriate CPT which 
        shall be notice forever to purchasers and encumbrancers of the 
        pendency of the proceeding and all matters referred to in the 
        court files and records pertaining to the proceeding.  
           Sec. 63.  Minnesota Statutes 1998, section 508A.71, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CANCELLATION OF MEMORIAL.] At the request of a 
        registered owner or other person in interest the examiner of 
        titles by a written directive may order (1) the amendment or 
        cancellation of a memorial relating to racial restrictions, 
        rights which are barred by a statute or rights which have 
        expired by the terms of the instrument creating the rights, or 
        (2) upon the submission of evidence satisfactory to the 
        examiner, the correction of the name or designation of a party 
        who is a registered owner or who has an interest registered on a 
        certificate of title.  The registrar of titles shall register 
        the directives of the examiner of titles upon the CPTs CPT, and 
        shall give full faith to the directives.  
           Sec. 64.  Minnesota Statutes 1998, section 508A.71, 
        subdivision 5, is amended to read: 
           Subd. 5.  [JOINT TENANTS; SURVIVAL.] In case of a CPT 
        outstanding to two or more owners as joint tenants, upon the 
        filing for registration of a certificate of death of one of the 
        joint tenants and an affidavit of survivorship, and upon the 
        surrender of the owner's duplicate CPT, the registrar without an 
        order or directive shall issue a new CPT for the premises to the 
        survivor in severalty or to the survivors in joint tenancy as 
        the case may be. 
           Sec. 65.  Minnesota Statutes 1998, section 508A.71, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CERTIFIED COPIES OF INSTRUMENTS; FILING.] When 
        instruments affecting land registered under sections 508A.01 to 
        508A.85 have been recorded in the office of any county recorder 
        in this state, a certified copy of it may be filed for 
        registration and registered with like effect as the original 
        instrument without an order or directive.  The owner's duplicate 
        CPT shall be presented to the registrar, together with the 
        certified copy, whenever the presentation is required by statute 
        for registration of the original instrument. 
           Sec. 66.  Minnesota Statutes 1998, section 508A.72, is 
        amended to read: 
           508A.72 [AGENCY; POWER TO BE REGISTERED.] 
           Any act which may legally be done or performed by any 
        person under sections 508A.01 to 508A.85 may be done and 
        performed by an agent when duly authorized in writing.  The 
        instrument or power of attorney shall be filed with and 
        registered by the registrar if it is executed and acknowledged 
        as required by law in the case of a deed.  Any instrument 
        revoking the power of attorney may be filed and registered if it 
        is executed and acknowledged in the same way.  A written 
        instrument of revocation of an unregistered power of attorney, 
        executed and acknowledged by a person having a registered 
        interest in land, may be filed for registration as a memorial 
        upon the certificate of title CPT. 
           Sec. 67.  Minnesota Statutes 1998, section 508A.76, is 
        amended to read: 
           508A.76 [DAMAGES THROUGH ERRONEOUS REGISTRATION; 
        ACTION REGISTRAR'S LIABILITY.] 
           Subdivision 1.  [DAMAGES THROUGH ERRONEOUS REGISTRATION.] 
        Any person who, without negligence on that person's part, 
        sustains any loss or damage by reason of any omission, mistake 
        or misfeasance of the registrar or the registrar's deputy, or of 
        any examiner or of any court administrator, or of a deputy of 
        the court administrator or examiner, in the performance of their 
        respective duties under sections 508A.01 to 508A.85, and any 
        person who, without negligence on that person's part, is 
        wrongfully deprived of any land or of any interest in it by the 
        registration of it, or by reason of the registration of any 
        other person, as the owner of the land, or by reason of any 
        mistake, omission, or misdescription in any CPT, or in any entry 
        or memorial, or by any cancellation, in the register of titles, 
        and who, by the provisions of sections 508A.01 to 508A.85, is 
        precluded from bringing an action for the recovery of the land, 
        or of any interest in it, or from enforcing any claim or lien 
        upon the same, may institute an action in the district court to 
        recover compensation out of the general fund for the loss or 
        damage.  
           Subd. 2.  [DOCUMENTS MISFILED.] The registrar may 
        reasonably rely on the affirmative representation of the party 
        presenting instruments for filing as to whether the land 
        described in the instruments or any part of it is registered or 
        unregistered.  A party requesting that misfiled instruments be 
        refiled with the registrar is responsible for paying any 
        additional fees required to properly file any instrument 
        misfiled because of an incorrect representation and, if 
        applicable, to enter a new CPT. 
           Sec. 68.  Minnesota Statutes 1998, section 508A.82, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
        to the registrar shall be as follows:  
           (1) of the fees provided herein, five percent of the fees 
        collected under clauses (3), (4), (10), (12), (13), (14), and 
        (16), and (18), for filing or memorializing shall be paid to the 
        state treasurer and credited to the general fund; plus a $4.50 
        surcharge shall be charged and collected in addition to the 
        total fees charged for each transaction under clauses (2) to 
        (5), (10), (12), (14), and (18) (16), with 50 cents of this 
        surcharge to be retained by the county to cover its 
        administrative costs and $4 to be paid to the state treasury and 
        credited to the general fund; 
           (2) for registering each original a first CPT, and 
        including issuing a duplicate copy of it, $30; 
           (3) for registering each instrument transferring the fee 
        simple title for which a new CPT is issued and for the issuance 
        and registration of the new CPT, including a copy of it, $30; 
           (4) for the entry of each memorial on a certificate and 
        endorsements upon duplicate CPTs CPT, $15; 
           (5) for issuing each residue CPT, $20; 
           (6) for exchange CPTs, $10 for each CPT canceled and $10 
        for each new CPT issued; 
           (7) for each certificate CPT showing condition of the 
        register, $10; 
           (8) for any certified copy of any instrument or writing on 
        file in the registrar's office, the same fees allowed by law to 
        county recorders for like services; 
           (9) for a noncertified copy of any CPT, other than the 
        copies issued under clauses (2) and (3), any instrument or 
        writing on file in the office of the registrar of titles, or any 
        specified page or part of it, an amount as determined by the 
        county board for each page or fraction of a page specified.  If 
        computer or microfilm printers are used to reproduce the 
        instrument or writing, a like amount per image; 
           (10) for filing two copies of any plat in the office of the 
        registrar, $30; 
           (11) for any other service under sections 508A.01 to 
        508A.85, the fee the court shall determine; 
           (12) for issuing a duplicate CPT pursuant to the directive 
        of the examiner of titles in counties in which the compensation 
        of the examiner is paid in the same manner as the compensation 
        of other county employees, $50, plus $10 to memorialize; 
           (13) for issuing a duplicate CPT pursuant to the directive 
        of the examiner of titles in counties in which the compensation 
        of the examiner is not paid by the county or pursuant to an 
        order of the court, $10; 
           (14) (12) for filing a condominium plat or an amendment to 
        it in accordance with chapter 515, $30; 
           (15) (13) for a copy of a condominium plat filed pursuant 
        to chapters 515 and 515A, the fee shall be $1 for each page of 
        the condominium plat with a minimum fee of $10; 
           (16) (14) for filing a condominium declaration and 
        condominium plat or an amendment to it in accordance with 
        chapter 515A, $10 for each certificate CPT upon which the 
        document is registered and $30 for the filing of the condominium 
        plat or an amendment to it; 
           (17) (15) in counties in which the compensation of the 
        examiner of titles is paid in the same manner as the 
        compensation of other county employees, for each parcel of land 
        contained in the application for a CPT, as the number of parcels 
        is determined by the examiner, a fee which is reasonable and 
        which reflects the actual cost to the county, established by the 
        board of county commissioners of the county in which the land is 
        located; 
           (18) (16) for filing a registered land survey in triplicate 
        in accordance with section 508A.47, subdivision 4, $30; and 
           (19) (17) for furnishing a certified copy of a registered 
        land survey in accordance with section 508A.47, subdivision 4, 
        $10. 
           Sec. 69.  Minnesota Statutes 1998, section 508A.85, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CHANGEOVER AT REQUEST OF OWNER.] Subsequent to 
        the expiration of the five year period set forth in section 
        508A.17, any registered owner of a CPT may request a changeover, 
        and upon surrender of the owner's duplicate CPT and payment of 
        the fee for an exchange as specified in section 508A.82, clause 
        (6), the registrar shall issue a certificate of title and cancel 
        the CPT. 
           Sec. 70.  Minnesota Statutes 1998, section 508A.85, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CHANGEOVER, MEMORIALS ON CERTIFICATE OF TITLE.] 
        Any certificate of title issued pursuant to this section shall 
        carry forward all memorials which still affect the land, except 
        for the memorial of the examiner's supplemental directive issued 
        pursuant to section 508A.22, subdivision 2.  It shall be made 
        subject to all statutory exceptions and be issued in the same 
        form as provided in section 508.35, except that, in lieu of 
        reciting that the certificate of title was issued pursuant to 
        the order of the district court, the certificate of title shall 
        recite that it was issued pursuant to the provisions of this 
        section and recite the date the first certificate of title was 
        issued for the land involved.  The memorial on the CPT pursuant 
        to section 508A.351 shall not be removed without an order of the 
        district court.  
           Sec. 71.  Minnesota Statutes 1998, section 524.2-201, is 
        amended to read: 
           524.2-201 [DEFINITIONS.] 
           In this part:  
           (1) As used in sections other than section 524.2-205, 
        "decedent's nonprobate transfers to others" means the amounts 
        that are included in the augmented estate under section 
        524.2-205. 
           (2) "Interest in property held with right of survivorship" 
        means the severable interest owned by the person or persons 
        whose interest is being determined in property held in joint 
        tenancy or in other form of common ownership with a right of 
        survivorship.  The interest shall be identified and valued as of 
        the time immediately prior to the death of the decedent or the 
        date of the transfer which causes the property to be included in 
        the augmented estate, as the case may be.  In the case of an 
        account described in article 6, part 2, the severable interest 
        owned by the person is the amount which belonged to the person 
        determined under section 524.6-203.  In the case of property 
        described in article 6, part 3, the severable interest owned by 
        the person is the amount consistent with section 524.6-306.  
           (3) "Marriage," as it relates to a transfer by the decedent 
        during marriage, means any marriage of the decedent to the 
        decedent's surviving spouse.  
           (4) "Nonadverse party" means a person who does not have a 
        substantial beneficial interest in the trust or other property 
        arrangement that would be adversely affected by the exercise or 
        nonexercise of the power that the person possesses respecting 
        the trust or other property arrangement.  A person having a 
        general power of appointment over property is deemed to have a 
        beneficial interest in the property.  
           (5) "Power" or "power of appointment" includes a power to 
        designate the beneficiary of an insurance policy or other 
        contractual arrangement.  
           (6) "Presently exercisable general power of appointment" 
        means a power possessed by a person at the time in question to 
        create a present or future interest in the person, in the 
        person's creditors, in the person's estate, or in the creditor 
        of the person's estate, whether or not the person then had the 
        capacity to exercise the power.  "General power of appointment" 
        means a power, whether or not presently exercisable, possessed 
        by a person to create a present or future interest in the 
        person, in the person's creditors, in the person's estate, or in 
        creditors of the person's estate.  
           (7) "Probate estate" means property that would pass by 
        intestate succession if the decedent dies without a valid will.  
           (8) "Property" includes values subject to a beneficiary 
        designation.  
           (9) "Right to income" includes a right to payments under a 
        commercial or private annuity, an annuity trust, a unitrust, or 
        a similar arrangement.  
           (10) "Transfer" includes:  (i) the exercise, release, or 
        lapse of a general power of appointment created by the decedent 
        alone or in conjunction with any other person, or exercisable by 
        a nonadverse party; and (ii) the exercise or release by the 
        decedent of a presently exercisable general power of appointment 
        created by someone other than the decedent.  "Transfer" does not 
        include the lapse, other than a lapse at death, of a power 
        described in clause (ii).  
           (11) "Bona fide purchaser" means a purchaser for value in 
        good faith and without notice or actual knowledge of an adverse 
        claim, or a person who receives a payment or other item of 
        property in partial or full satisfaction of a legally 
        enforceable obligation in good faith without notice of an 
        adverse claim.  In the case of real property located in 
        Minnesota purchased from a successor or successors in interest 
        of a decedent, the purchaser is without notice of an adverse 
        claim arising under this part or, if the decedent was not 
        domiciled in Minnesota at the time of death, arising under 
        similar provisions of the law of the decedent's domicile, unless 
        the decedent's surviving spouse has filed a notice in the office 
        of the county recorder of the county in which the real property 
        is located or, if the property is registered land, in the office 
        of the registrar of titles of the county in which the real 
        property is located, containing the legal description of the 
        property, a brief statement of the nature and extent of the 
        interest claimed, and the venue, title, and file number of the 
        proceeding for an elective share, if any has been commenced.  
        The registrar of titles is authorized to accept for registration 
        without production of the owner's duplicate of the certificate 
        of title any such notice which relates to registered land. 
           Sec. 72.  [REPEALER.] 
           Minnesota Statutes 1998, sections 473H.02, subdivision 11; 
        473H.05, subdivision 3; 508.405; 508.421, subdivision 1; 508.44; 
        508.45; 508.51, subdivision 2; 508.835; 508A.421, subdivision 1; 
        508A.44; 508A.45; 508A.51, subdivision 2; and 508A.835, are 
        repealed. 
           Sec. 73.  [EFFECTIVE DATE.] 
           Article 1 is effective January 1, 2000. 
                                   ARTICLE 2
           Section 1.  Minnesota Statutes 1998, 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 in this chapter apply to 
        condominiums created under chapter 515:  515B.1-104 (Variation 
        by Agreement); 515B.1-105 (Separate Titles and Taxation); 
        515B.1-106 (Applicability of Local Ordinances, Regulations, and 
        Building Codes); 515B.1-107 (Eminent Domain); 515B.1-108 
        (Supplemental General Principles of Law Applicable); 515B.1-109 
        (Construction Against Implicit Repeal); 515B.1-110 (Uniformity 
        of Application and Construction); 515B.1-111 (Severability); 
        515B.1-112 (Unconscionable Agreement or Term of Contract); 
        515B.1-113 (Obligation of Good Faith); 515B.1-114 (Remedies to 
        be Liberally Administered); 515B.1-115 (Notice); 515B.1-116 
        (Recording); 515B.2-103 (Construction and Validity of 
        Declaration and Bylaws); 515B.2-104 (Description of 
        Units); 515B.2-108(d) (Allocation of Interests); 515B.2-109(c) 
        (Common Elements and Limited Common Elements); 515B.2-112 
        (Subdivision or Conversion of Units); 515B.2-113 (Alteration of 
        Units); 515B.2-114 (Relocation of Boundaries Between Adjoining 
        Units); 515B.2-115 (Minor Variations in Boundaries); 515B.2-118 
        (Amendment of Declaration); 515B.3-102 (Powers of Unit Owners' 
        Association); 515B.3-103(a), (b), and (g) (Board; Directors and 
        Officers; Period of Declarant Control); 515B.3-107 (Upkeep of 
        Common Interest Community); 515B.3-108 (Meetings); 515B.3-109 
        (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and 
        Contract Liability); 515B.3-112 (Conveyance or Encumbrance of 
        Common Elements); 515B.3-113 (Insurance); 515B.3-114 (Reserves; 
        Surplus Funds); 515B.3-115 (c), (e), (f), (g), (h), and (i) 
        (Assessments for Common Expenses); 515B.3-116 (Lien for 
        Assessments); 515B.3-117 (Other Liens); 515B.3-118 (Association 
        Records); 515B.3-119 (Association as Trustee); 515B.3-121 
        (Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108 
        (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of 
        Action; Attorney's Fees); and.  Section 515B.1-103 (Definitions) 
        shall apply to the extent necessary in construing any of those 
        the sections referenced in this section.  The foregoing Sections 
        shall 515B.1-105, 515B.1-106, 515B.1-107, 515B.1-116, 
        515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110, 
        515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 
        515B.3-121, 515B.4-107, 515B.4-108, and 515B.4-116 apply only 
        with respect to events and circumstances occurring on and after 
        June 1, 1994, and shall not.  All other sections referenced in 
        this section apply only with respect to events and circumstances 
        occurring after May 31, 1999.  A section referenced in this 
        section does not invalidate the declarations, bylaws or 
        condominium plats of those condominiums created before the 
        effective date of amendments made by this section.  But all 
        sections referenced in this section prevail over the 
        declarations, bylaws, CIC plats, rules and regulations under 
        them, of condominiums created before the effective date of 
        amendments made by this section, except to the extent that this 
        chapter defers to the declarations, bylaws, CIC plats, or rules 
        and regulations issued under them. 
           (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 sections 
        515B.1-116, subsections (a), (c), (d), (e), (f), and (h), 
        515B.4-107, and 515B.4-108, apply to all planned communities and 
        cooperatives regardless of when they are created. 
           (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 was recorded 
        before June 1, 1994.  Any 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 a new or amended CIC 
        plat where required, and by 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) In a condominium, the preexisting condominium plat 
        shall be the CIC plat and an amended CIC plat shall be required 
        only if the amended declaration or bylaws contain provisions 
        inconsistent with the preexisting condominium plat.  The 
        condominium's CIC number shall be the apartment ownership number 
        or condominium number originally assigned to it by the recording 
        officer.  In a cooperative in which the unit owners' interests 
        are characterized as real estate, a CIC plat shall be required.  
        In a planned community, the preexisting plat recorded pursuant 
        to chapter 505, 508, or 508A, or the part of the plat upon which 
        the common interest community is located, shall be the CIC plat. 
           (3) 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 as described in the 
        declaration consist solely of leasehold interests proprietary 
        leases 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) (5) real estate subject only to an instrument or 
        instruments filed primarily for the purpose of creating or 
        modifying rights with respect to access, utilities, parking, 
        ditches, drainage, or irrigation. 
           (f) Section 515B.1-106 shall apply to all common interest 
        communities. 
           Sec. 2.  Minnesota Statutes 1998, 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" or "CIC" 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.  Real estate subject to a master 
        association, regardless of when the master association was 
        formed, shall not collectively constitute a separate common 
        interest community unless so stated in the master declaration 
        recorded against the real estate pursuant to section 515B.2-121, 
        subsection (f)(1). 
           (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 created on or 
        after June 1, 1994, 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 A person (i) hired by an 
        association to perform maintenance, repair, accounting, 
        bookkeeping or management services, or (ii) granted authority 
        under an instrument recorded primarily for the purpose of 
        creating rights or obligations with respect to utilities, 
        access, drainage, or recreational amenities, is not, solely by 
        virtue reason of that relationship, a master association. 
           (22) "Master declaration" means a written instrument, 
        however named, (i) recorded on or after June 1, 1994, against 
        property subject to powers exercised by a master association and 
        (ii) satisfying the requirements of section 515B.2-121, 
        subsection (f)(1). 
           (22) (23) "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) (24) "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) (25) "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) (26) "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) (27) "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) (28) "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) (29) "Residential use" means use as a dwelling, 
        whether primary, secondary or seasonal, but not transient use 
        such as hotels or motels. 
           (29) (30) "Secured party" means the person owning a 
        security interest as defined in paragraph (30). 
           (30) (31) "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) (32) "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) subdivide units or convert units into common 
        elements, limited common elements and/or units; 
           (iv) maintain sales offices, management offices, signs 
        advertising the common interest community, and models; 
           (v) use easements through the common elements for the 
        purpose of making improvements within the common interest 
        community or any additional real estate; 
           (vi) create a master association and provide for the 
        exercise of authority by the master association over the common 
        interest community or its unit owners; 
           (vii) merge or consolidate a common interest community with 
        another common interest community of the same form of ownership; 
        or 
           (viii) appoint or remove any officer or director of the 
        association, or the master association where applicable, during 
        any period of declarant control. 
           (32) (33) "Time share" means a right to occupy a unit or 
        any of several units during three or more separate time periods 
        over a period of at least 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) (34) "Unit" means a physical portion of a common 
        interest community the boundaries of which 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) (35) "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) (36) "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 1998, 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.  In those counties 
        which have a tract index, the county recorder shall enter the 
        declaration in the tract index for each unit affected.  The 
        registrar of titles shall file the declaration on the 
        certificate of title for each unit affected. 
           (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 a recorded 
        document relating to a common interest community purports to 
        require the execution of any restatement or amendment of the 
        document by a certain percentage of unit owners or secured 
        parties, and if the amendment or restatement is to be recorded 
        pursuant to this chapter, an affidavit of the president or 
        secretary of the association stating that the required vote or 
        agreement has occurred shall be attached to the document to be 
        recorded 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 the certificates of title for the first ten affected 
        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) Except as permitted under this subsection, a recording 
        officer shall not file or record a declaration creating a new 
        common interest community, unless the county treasurer has 
        certified that the property taxes payable in the current year 
        for the real estate included in the proposed common interest 
        community have been paid.  This certification is in addition to 
        the certification for delinquent taxes required by section 
        272.12.  In the case of preexisting common interest communities, 
        the recording officer shall accept, file, and record the 
        following instruments, without requiring a certification as to 
        the current or delinquent taxes on any of the units in the 
        common interest community:  (i) a declaration subjecting the 
        common interest community to this chapter; (ii) a declaration 
        changing the form of a common interest community pursuant to 
        section 515B.2-123; or (iii) an amendment to or restatement of 
        the declaration, bylaws, or CIC plat.  In order for the 
        instruments to be accepted and recorded under the preceding 
        sentence, the assessor must certify or otherwise inform the 
        recording officer that, for taxes payable in the current year, 
        the assessor has allocated taxable values to each unit or has 
        separately assessed each unit. 
           (g) The registrar of titles shall not require the filing on 
        certificates of title previously issued for units in a flexible 
        common interest community of an amendment to a declaration 
        pursuant to section 515B.2-111 made solely to add additional 
        real estate. 
           (h) In the case of an amendment to a declaration or a 
        transfer of special declarant rights with respect to a common 
        interest community located on registered land, the registrar of 
        titles shall not require the surrender of the owner's duplicate 
        certificates of title to record the document, except for any 
        owner's duplicate certificates of title relating to additional 
        real estate being added by an amendment under section 515B.2-111.
           Sec. 4.  Minnesota Statutes 1998, section 515B.2-101, is 
        amended to read: 
           515B.2-101 [CREATION OF COMMON INTEREST COMMUNITIES.] 
           (a) On and after June 1, 1994, a common interest community 
        may be created only as follows: 
           (1) A condominium may be created only by recording a 
        declaration. 
           (2) A cooperative may be created only by recording a 
        declaration and by recording a conveyance of the real estate 
        subject to that declaration to the association. 
           (3) A planned community which includes common elements may 
        be created only by simultaneously recording a declaration and by 
        recording a conveyance of the common elements subject to that 
        declaration to the association. 
           (4) A planned community without common elements may be 
        created only by recording a declaration. 
           (b) Except as otherwise expressly provided in this chapter, 
        the declaration shall be executed by all persons whose interests 
        in the real estate will be conveyed to unit owners, except 
        vendors under contracts for deed, and by every lessor of a lease 
        the expiration or termination of which will terminate the common 
        interest community.  The declaration shall be recorded in every 
        county in which any portion of the common interest community is 
        located.  Failure of any party not required to execute a 
        declaration, but having a recorded interest in the common 
        interest community, to join in the declaration shall have no 
        effect on the validity of the common interest community; 
        provided that the party is not bound by the declaration until 
        that party acknowledges the existence of the common interest 
        community in a recorded instrument. 
           (c) In a condominium or real estate cooperative where the 
        unit boundaries are delineated by a physical structure, a 
        declaration, or an amendment to a declaration adding units, may 
        shall not be recorded unless all structural components and 
        mechanical systems of all buildings containing or comprising any 
        units serving more than one unit in all buildings containing the 
        units thereby created, but not necessarily the units, are 
        substantially completed, as evidenced by a recorded certificate 
        executed by a registered engineer or architect. 
           (d) A project which (i) meets the definition of a "common 
        interest community" in section 515B.1-103(10), (ii) is created 
        after May 31, 1994, and (iii) is not exempt under section 
        515B.1-102(e), is subject to this chapter even if this or other 
        sections of the chapter have not been complied with, and the 
        declarant and all unit owners are bound by all requirements and 
        obligations of this chapter. 
           Sec. 5.  Minnesota Statutes 1998, section 515B.2-104, is 
        amended to read: 
           515B.2-104 [DESCRIPTION OF UNITS.] 
           (a) 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) 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.  Any instrument conveying 
        or asserting an interest in a unit shall reference the county 
        and the common interest community number immediately following 
        the name of the plat or registered land survey.  In planned 
        communities whose CIC plats comply with section 515B.2-110(c), 
        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 1998, section 515B.2-105, is 
        amended to read: 
           515B.2-105 [DECLARATION CONTENTS; ALL COMMON INTEREST 
        COMMUNITIES.] 
           (a) The declaration shall contain: 
           (1) the number of the common interest community, whether 
        the common interest community is a condominium, planned 
        community or cooperative, and the name of the common interest 
        community, which shall appear at the top of the first page of 
        the declaration in the following format: 
                       Common Interest Community No. ....
                      (Type of Common Interest Community)
           
                      (Name of Common Interest Community)
                                 (DECLARATION)
           (2) a statement as to whether the common interest community 
        is or is not subject to a master association; 
           (3) the name of the association, 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 a statement identifying any appurtenant easement 
        necessary for access to a public street or highway, and a 
        general reference to any other 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; 
           (8) an allocation to each unit of the allocated interests 
        in the manner described in section 515B.2-108; 
           (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; 
           (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; 
           (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; 
           (12) a statement as to whether time shares are permitted; 
        and 
           (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 1998, section 515B.2-108, is 
        amended to read: 
           515B.2-108 [ALLOCATION OF INTERESTS.] 
           (a) The declaration shall allocate to each unit: 
           (1) in a condominium, a fraction or percentage of undivided 
        interests in the common elements and in the common expenses of 
        the association and a portion of the votes in the association; 
           (2) in a cooperative, an ownership interest in the 
        association, a fraction or percentage of the common expenses of 
        the association and a portion of the votes in the association; 
        and 
           (3) in a planned community, a fraction or percentage of the 
        common expenses of the association and a portion of the votes in 
        the association. 
           (b) The declaration shall state the formulas used to 
        establish allocations of interests.  If the fractions or 
        percentages are all equal the declaration may so state in lieu 
        of stating the fractions or percentages.  If equality is 
        designated by the declaration as the formula for the allocation 
        of votes, votes do not attach to units that are auxiliary to 
        other units, such as garage units or storage units.  The 
        allocations may shall not discriminate in favor of units owned 
        by the declarant or an affiliate of the declarant, except as 
        provided in section sections 515B.2-121 and 515B.3-115. 
           (c) If units may be added to the common interest community, 
        the declaration shall state the formulas to be used to 
        reallocate the allocated interests among all units included in 
        the common interest community after the addition. 
           (d) The declaration may authorize special allocations which 
        provide:  (i) that different allocations of votes and/or common 
        expenses shall be made of unit owner votes among certain units 
        or classes of units on particular matters specified in the 
        declaration, or (ii) for class voting on specified issues 
        affecting the class, with respect to allocations within the 
        class or common expenses pertaining only to the class, or to 
        otherwise protect valid interests of the class of common 
        expenses among certain units or classes of units on particular 
        matters specified in the declaration.  Special allocations shall 
        may only be used to address operational, physical or 
        administrative differences within the common interest 
        community.  A declarant may not utilize special allocations for 
        the purpose of evading any limitation or obligation imposed on 
        declarants by this chapter nor may units constitute a class 
        because they are owned by a declarant. 
           (e) The sum of each category of allocated interests 
        allocated at any time to all the units must equal one if stated 
        as a fraction or 100 percent if stated as a percentage.  In the 
        event of a discrepancy between an allocated interest and the 
        result derived from application of the pertinent formula, the 
        allocated interest prevails. 
           (f) In a condominium or planned community, the common 
        elements are not subject to partition, and any purported 
        conveyance, encumbrance, judicial sale, or other voluntary or 
        involuntary transfer of an undivided interest in the common 
        elements made without the unit to which that interest is 
        allocated is void.  The granting of easements, licenses or 
        leases pursuant to section 515B.3-102 shall not constitute a 
        partition. 
           (g) In a cooperative, any purported conveyance, 
        encumbrance, judicial sale, or other voluntary or involuntary 
        transfer of an ownership interest in the association made 
        without the possessory interest in the unit to which that 
        interest is related is void. 
           Sec. 8.  Minnesota Statutes 1998, section 515B.2-109, is 
        amended to read: 
           515B.2-109 [COMMON ELEMENTS AND LIMITED COMMON ELEMENTS.] 
           (a) Except as limited by the declaration or this chapter, 
        common elements other than limited common elements may be used 
        in common by all unit owners.  Limited common elements are 
        designated for the exclusive use of the unit owners of the unit 
        or units to which the limited common elements are allocated, 
        subject to subsection (b) and the rights of the association as 
        set forth in the declaration, the bylaws or this chapter. 
           (b) Except for the limited common elements described in 
        section 515B.2-102, subsections (d) and (f), the declaration 
        shall specify to which unit or units each limited common element 
        is allocated. 
           (c) An allocation of limited common elements may be changed 
        by an amendment to the declaration executed by the unit owners 
        between or among whose units the reallocation is made and the 
        association.  The amendment shall be approved by the board of 
        directors of the association as to form, and compliance with the 
        declaration and this chapter.  The association shall establish 
        fair and reasonable procedures and time frames for the 
        submission and processing of the reallocations, and shall 
        maintain records thereof.  If approved, the association shall 
        cause the amendment to be recorded promptly.  The amendment 
        shall be effective when recorded.  The association may require 
        the unit owners requesting the reallocation to pay all fees and 
        costs for reviewing, preparing and recording the amendment and 
        any amended CIC plat. 
           Sec. 9.  Minnesota Statutes 1998, section 515B.2-110, is 
        amended to read: 
           515B.2-110 [COMMON INTEREST COMMUNITY PLAT (CIC PLAT).] 
           (a) The A CIC plat is required for condominiums and planned 
        communities, and cooperatives in which the unit owners' 
        interests are characterized as real estate.  The CIC plat is a 
        part of the declaration in condominiums, and in cooperatives in 
        which the unit owners' interests are characterized as real 
        estate, but need not be physically attached to the declaration. 
           (1) In a condominium, or a cooperative in which the unit 
        owners' interests are characterized as real estate, the CIC plat 
        shall comply with subsection (c). 
           The CIC plat for (2) In a planned community, a CIC plat 
        which does not comply with subsection (c) may shall consist of 
        all or part of the a subdivision plat satisfying the 
        requirements of chapter 505, 508, or 508A, and or plats 
        complying with subsections (d)(1) and (d)(2).  The CIC plat need 
        not contain the number of the common interest community need not 
        appear on the CIC plat.  The CIC plat is a part of the 
        declaration in condominiums, and in cooperatives in which the 
        unit owners' interests are characterized as real estate, but 
        need not be physically attached to the declaration., and may be 
        recorded at any time at or before the time of recording of the 
        declaration.  If the CIC plat for the planned community complies 
        with subsection (c), the number of the common interest community 
        shall be included and the CIC plat shall be recorded at the time 
        of recording of the declaration.  
           (3) In cooperatives a cooperative in which the unit owners' 
        interests are characterized as personal property, 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 any amendment to it, 
        including the unit's unit identifier, and its location within 
        the building if the building contains more than one unit. 
           (b) The CIC plat for condominiums, for planned communities 
        using a plat complying with subsection (c), and for cooperatives 
        in which the unit owners' interests are characterized as real 
        estate, 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 the common interest community 
        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.  A certification of the CIC plat or an amendment to it 
        under this subsection by an architect is not required if all 
        parts of the CIC plat or amendment are prepared 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 except that with respect to limited common 
        elements described in section 515B.2-102, subsections (d) and 
        (f), only such material limited common elements as porches, 
        balconies, decks, patios, and garages shall be shown; 
           (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 subsection (c) or it shall: 
           (1) satisfy the requirements of chapter 505, 508, or 508A, 
        as applicable; and 
           (2) 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 this 
        section which apply to the type of common interest community in 
        question.  If less than all additional real estate is being 
        added, the supplemental CIC plat for a condominium, a planned 
        community whose CIC plat complies with subsection (c), or a 
        cooperative in which the unit owners' interests are 
        characterized as real estate, 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. 10.  Minnesota Statutes 1998, section 515B.2-113, is 
        amended to read: 
           515B.2-113 [ALTERATIONS OF UNITS.] 
           Subject to the provisions of the declaration and applicable 
        law: 
           (a) Subject to the provisions of the declaration and 
        applicable law, a unit owner may, at the unit owner's expense, 
        make any improvements or alterations to the unit, provided:  (i) 
        that they do not impair the structural integrity or mechanical 
        systems, affect the common elements, or impair the support of 
        any portion of the common interest community provided, (i); (ii) 
        that prior arrangements are made with the association to ensure 
        that other unit owners are not disturbed, (ii); (iii) that the 
        common elements are not damaged,; and (iii) (iv) that the common 
        elements and other units are protected against mechanics' liens. 
           (b) Subject to the provisions of applicable law, a unit 
        owner of a unit in residential use may, at the unit owner's 
        expense, make improvements or alterations to the unit as 
        necessary for the full enjoyment of the unit by any person 
        residing in the unit who has a handicap or disability, as 
        provided in the Fair Housing Amendments Act, United States Code, 
        title 42, section 3601, et seq., and the Minnesota Human Rights 
        Act, chapter 363, and any amendments to those acts. 
           (c) The declaration, bylaws, rules, and regulations, or 
        agreements with the association may not prohibit the 
        improvements or alterations referred to in subsection (b), but 
        may reasonably regulate the type, style, and quality of the 
        improvements or alterations, as they relate to health, safety, 
        and architectural standards.  In addition, improvements or 
        alterations made pursuant to subsection (b) must satisfy the 
        requirements of subsection (a)(i), (ii), (iii), and (iv). 
           (d) Notwithstanding any contrary provision of section 
        515B.1-102, subsection (b) applies to all common interest 
        communities subject to chapter 515, 515A, or this chapter.  The 
        unit owner's rights under this section may not be waived. 
           (e) Subsection (b) does not apply to restrictions on 
        improvements or alterations imposed by statute, rule, or 
        ordinance. 
           (f) Subject to the provisions of the declaration and 
        applicable law, a unit owner may, at the unit owner's expense, 
        after acquiring title to an adjoining unit or an adjoining part 
        of an adjoining unit, with the prior written approval of the 
        association and first mortgagees of the affected units, remove 
        or alter any intervening partition or create apertures therein, 
        even if the partition is part of the common elements, if those 
        acts do not impair the structural integrity or mechanical 
        systems or lessen the support of any portion of the common 
        interest community.  The adjoining unit owners shall have the 
        exclusive license to use the space occupied by the removed 
        partition, but the use shall not create an easement or vested 
        right.  Removal of partitions or creation of apertures under 
        this paragraph is not an alteration of boundaries.  The 
        association may require that the owner or owners of units 
        affected replace or restore any removed partition, that the unit 
        owner comply with subsection (a)(i), (ii) and (iii), and that 
        the unit owner pay all fees and costs incurred by the 
        association in connection with the alteration. 
           Sec. 11.  Minnesota Statutes 1998, 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. 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, subject to the following 
        qualifications: 
           (1) A declarant may execute amendments under section 
        515B.2-111 or 515B.2-112. 
           (2) The association and certain unit owners, as applicable, 
        may execute amendments under section 515B.2-107, 515B.2-109, 
        515B.2-112, 515B.2-113, 515B.2-114, 515B.2-119, 515B.2-122, 
        515B.2-123, or 515B.2-124. 
           (3) The unanimous written consent of the unit owners is 
        required for any amendment which (i) creates or increases 
        special declarant rights, (ii) increases the number of units, 
        (iii) changes the boundaries of any unit, (iv) changes the 
        allocated interests of a unit, (v) changes common elements to 
        limited common elements, (vi) changes the authorized use of a 
        unit from residential to nonresidential, or conversely, or (vii) 
        changes the characterization of the unit owner's interest in a 
        cooperative from real estate to personal property, or 
        conversely; unless the amendment is expressly permitted or 
        required by other provisions of this chapter. 
           (4) The declaration may specify less than 67 percent for 
        approval of an amendment, but 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.  If an 
        amendment (i) changes the number of units, (ii) changes the 
        boundary of a unit, (iii) changes common elements to limited 
        common elements, or conversely, or (iv) makes any other change 
        that affects the CIC plat, then an amendment to the CIC plat 
        reflecting the change shall be 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. 12.  Minnesota Statutes 1998, section 515B.2-119, is 
        amended to read: 
           515B.2-119 [TERMINATION OF COMMON INTEREST COMMUNITY.] 
           (a) Except as otherwise provided in this chapter, 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, 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. 13.  Minnesota Statutes 1998, section 515B.2-121, is 
        amended to read: 
           515B.2-121 [MASTER ASSOCIATIONS.] 
           (a) A master association formed after June 1, 1994, shall 
        be organized as a Minnesota profit, nonprofit, or cooperative or 
        municipal corporation.  A master association shall be 
        incorporated prior to the delegation to it of any powers under 
        this chapter. 
           (b) The members of the master association shall be any 
        combination of (i) unit owners of one or more common interest 
        communities, (ii) one or more associations, (iii) one or more 
        master associations, or (iv) owners or property owners 
        associations not subject to this chapter in combination with any 
        other category of member.  An association or its members may be 
        members of an entity created before June 1, 1994, which performs 
        functions similar to those performed by a master association 
        regardless of whether the entity is subject to this chapter. 
           (c) If so provided in the declaration, any of the powers 
        described in section 515B.3-102 may be delegated to and 
        exercised by a master association, and the master association 
        shall have all powers referred to elsewhere in this chapter 
        which may be necessary or incidental to the exercise of the 
        delegated powers.  However, a master association may exercise 
        the powers set forth in section 515B.3-102(a)(2) only to the 
        extent expressly permitted in the declarations of the common 
        interest communities, and the declarations or bylaws of other 
        master associations, which are intended to be subject to those 
        powers and which are members of the master association, or whose 
        members or associations are members of the master 
        association.  A master association shall be governed by a board 
        of directors.  The directors of a master association shall be 
        elected or, if a nonprofit corporation, elected or appointed, in 
        a manner consistent with the requirements of the statute under 
        which the master association is formed and of the master 
        association's articles of incorporation and bylaws, and subject 
        to the following requirements: 
           (1) Except as set forth in subsections (2) and (3), the 
        members of the master association shall elect the board of 
        directors.  A majority of the directors shall be members of the 
        master association or members of a member of the master 
        association, and shall be persons other than a declarant or 
        affiliate of a declarant.  If the member is not a natural 
        person, it may designate a natural person to act on its behalf. 
           (2) The articles of incorporation or bylaws of the master 
        association may authorize a person other than a member of the 
        master association or a unit owner, including a declarant, to 
        appoint or elect one director.  
           (3) A master association's articles of incorporation may 
        suspend the members' right to elect or, in the case of a 
        nonprofit corporation, elect or appoint, the master 
        association's board of directors for a specified time period.  
        During this period, the person or persons who execute the master 
        declaration under subsection (f)(1), or their successors or 
        assigns, may appoint the directors.  The period during which the 
        person or persons may appoint the directors begins when the 
        master declaration is recorded and terminates upon the earliest 
        of: 
           (i) the voluntary surrender of the right to appoint 
        directors; 
           (ii) the date ten years after the date the master 
        declaration is recorded; 
           (iii) the date, if any, in the articles of incorporation; 
        or 
           (iv) the date when at least 75 percent of the associations 
        that are members of the master association or whose members are 
        members of the master association are controlled by their 
        members.  An association's members control the association when 
        they have the right to elect or appoint a majority of the 
        association's voting directors. 
           (4) The term of any director appointed under subsection (3) 
        expires 60 days after the right to appoint directors 
        terminates.  The master association's board of directors shall 
        call an annual or special meeting of the master association's 
        members to elect or appoint successor directors within the 
        60-day period. 
           (5) The system for the election of directors shall be fair 
        and equitable, and shall take into account the number of members 
        of each association any of whose powers are delegated to the 
        master association, the needs of the members of the master 
        association, the allocation of liability for master association 
        common expenses, and the types of common interest communities 
        and other real estate subject to the master association. 
           (d) The powers may be delegated to a master association by 
        the declaration, or by the board pursuant to authority granted 
        in the declaration.  If any delegation of powers may be made at 
        the discretion of the board, the board of the master association 
        shall have authority to determine whether the delegation of 
        powers is authorized by, and consistent with the intent of, the 
        declaration of the common interest community whose association's 
        powers are being delegated and the organizational documents of 
        the master association, and shall have authority to refuse any 
        improper delegation of powers.  The articles of incorporation or 
        bylaws of the master association may authorize special classes 
        of directors and allocations of director voting rights, as 
        follows:  (i) classes of directors that are elected by different 
        classes of members, to address operational, physical, or 
        administrative differences within the master association, or 
        (ii) class voting by the classes of directors on specific issues 
        affecting only a certain class or classes of members or units, 
        or to otherwise protect the legitimate interests of such class 
        or classes.  No person may utilize such special classes or 
        allocations for the purpose of evading any limitation imposed on 
        declarants by this chapter. 
           (e) If a board properly delegates powers to a master 
        association, the members of the board have no liability for the 
        acts or omissions of the master association with respect to the 
        delegated powers following delegation, except those arising out 
        of their actions as officers or directors of the master 
        association.  The officers of a master association shall be 
        elected, appointed, or designated in a manner consistent with 
        the statute under which the master association is formed and 
        consistent with the master association articles of incorporation 
        and bylaws. 
           (f) Sections 515B.3-103, 515B.3-108, 515B.3-109, 
        515B.3-110, and 515B.3-112 shall apply in the conduct of the 
        affairs of a master association; provided, that the rights of 
        voting, notice and other rights enumerated in those sections 
        apply only to persons who elect the board of a master 
        association, whether or not those persons are otherwise unit 
        owners within the meaning of this chapter. The creation and 
        authority of a master association shall be governed by the 
        following requirements: 
           (1) A master declaration shall be recorded in connection 
        with the creation of a master association.  The master 
        declaration shall be executed by the owners of the real estate 
        subjected to the master declaration.  The master declaration 
        shall contain, at a minimum: 
           (i) the name of the master association; 
           (ii) a legally sufficient description of the real estate 
        which is subject to the master declaration, and a legally 
        sufficient description of any other real estate which may be 
        subjected to the master declaration pursuant to subsection (g); 
           (iii) a statement as to whether the real estate subject to, 
        and which may be subjected to, the master declaration 
        collectively is or collectively will be a separate common 
        interest community; 
           (iv) a description of the members of the master 
        association; 
           (v) a description of the powers to be exercised by the 
        master association on behalf of its members, and on behalf of 
        the members of its members in the case of members that are 
        common interest communities.  The provisions of the master 
        declaration with respect to the grant and exercise of powers for 
        common interest communities subject to the master association 
        shall be consistent with the declarations of the common interest 
        communities that delegate powers to the master association; 
           (vi) a description of the formula governing the allocation 
        of assessments and member voting rights, including any special 
        classes or allocations referred to in subsection (d); and 
           (vii) the requirements for amendment of the master 
        declaration, other than an amendment under subsection (g). 
           (2) The declaration of a common interest community subject 
        to the master association shall contain provisions delegating, 
        or authorizing the delegation of, powers to the master 
        association in accordance with subsection (f)(3).  The 
        provisions of the declarations relating to the delegation shall 
        be consistent with the provisions of the master declaration 
        granting or reserving those powers to the master association.  
           (3) The declaration may: 
           (i) delegate any of the powers described in section 
        515B.3-102 to a master association.  A delegation of the powers 
        described in section 515B.3-102(a)(2) is effective only if 
        expressly stated in the declaration; and 
           (ii) authorize the board to delegate any of the powers 
        described in section 515B.3-102, except for the powers described 
        in section 515B.3-102(a)(2), to a master association. 
           (4) With respect to any other property subject to a master 
        association, there need not be an instrument other than the 
        master declaration recorded against the property to empower the 
        master association to exercise powers with respect to the 
        property. 
           (5) If a declaration or other recorded instrument 
        authorizes a board or owner to delegate powers to a master 
        association, the master association board may refuse any 
        delegation of powers that does not comply with (i) this chapter, 
        (ii) the declaration or other recorded instrument, or (iii) the 
        organizational documents of the master association. 
           (6) The failure of a declaration, a board or an owner of 
        property subject to a master association to properly delegate 
        some or all of the powers to the master association does not 
        affect the authority of the master association to exercise those 
        and other powers with respect to other common interest 
        communities or owners of properties that are subject to the 
        master association. 
           (g) The bylaws of the master association may provide for a 
        control period during which the members of the master 
        association board may be appointed by a person, identified in 
        the master association's bylaws, other than the members of the 
        master association.  The control period may extend from the date 
        of filing of the articles of incorporation of the master 
        association, and shall terminate upon the earlier of (i) 
        surrender of control by the person authorized to appoint the 
        members of the master association board or (ii) 60 days after 
        conveyance of 75 percent of the units contained in all common 
        interest communities subject to the master association to unit 
        owners other than a declarant or an affiliate of a declarant of 
        those common interest communities, subject to the following: 
           (1) Not later than 60 days after conveyance of 50 percent 
        of the units that may be created to unit owners other than a 
        declarant or an affiliate of a declarant, a meeting of the 
        members of the master association shall be held at which not 
        less than 33-1/3 percent of the members of the master 
        association board shall be elected by persons entitled to elect 
        said board other than a declarant or an affiliate of a declarant.
           (2) Not later than the termination of the control period, 
        those members of the master association entitled to elect the 
        master association board shall elect a master association board 
        of at least three members.  Thereafter, a majority of the 
        directors of the master association board shall be members of 
        the master association other than a declarant or an affiliate of 
        a declarant.  The remaining directors need not be members of the 
        master association, unless required by the articles of 
        incorporation or bylaws of the master association.  The master 
        association board shall elect the officers of the master 
        association.  The directors and officers shall take office upon 
        election. 
           (3) In determining whether the control period has 
        terminated under subsection (h), or whether members other than a 
        declarant or an affiliate of a declarant are entitled to elect 
        members of the master board, the percentage of units which has 
        been conveyed shall be calculated based upon the assumption that 
        all units which a declarant or declarants have built or reserved 
        the right to build in all common interest communities which may 
        be subject to the master association are subjected to the master 
        association. 
           (h) The declaration or bylaws of the master association, 
        and the declaration of each common interest community whose 
        association's powers are delegated to the association, shall 
        provide that after the expiration of the control period referred 
        to in subsection (g) the board of the master association shall 
        be elected by the members of the master association.  The system 
        of election shall be fair and equitable, and shall take into 
        account the number of members of each association any of whose 
        powers are delegated to the master association, the needs of the 
        members of the master association, the allocation of liability 
        for master association common expenses and the types of common 
        interest communities and other real estate subject to the master 
        association. 
           (i) Master association common expenses shall be allocated 
        among the members of the master association in a fair and 
        equitable manner.  Where applicable and appropriate, the 
        formulas and principles described in section 515B.2-108 (b), 
        (c), (d) and (e) should be utilized in making the allocations.  
        The formulas and procedures governing the allocation and 
        assessment of master association common expenses shall be set 
        forth in the declaration or bylaws of the master association, 
        and shall be consistent with the declarations of the common 
        interest communities which may be subject to the master 
        association. 
           (j) If a master association owns or controls real estate 
        which is subject to use rights by members of the master 
        association, an instrument describing the use rights, and the 
        benefited land and parties, shall be recorded against the real 
        estate. 
           (g) The master declaration may authorize other real estate 
        to be subjected to the master declaration.  The other real 
        estate shall be subjected to the master declaration by an 
        amendment executed by the owner of the other real estate and 
        approved in writing by the person who executed the master 
        declaration, if other than the owner of the other real estate. 
           (h) Sections 515B.3-103, 515B.3-108, 515B.3-109, 
        515B.3-110, and 515B.3-112 shall apply in the conduct of the 
        affairs of a master association.  But the rights of voting, 
        notice, and other rights enumerated in those sections apply only 
        to persons who elect or appoint the board of a master 
        association, whether or not those persons are otherwise unit 
        owners within the meaning of this chapter. 
           (i) If so provided in the master declaration, a master 
        association may levy assessments for common expenses of the 
        master association against the property subject to the master 
        declaration, and have and foreclose liens securing the 
        assessments.  The liens shall have the same priority against 
        secured parties, shall include the same fees and charges, and 
        may be foreclosed in the same manner, as assessment liens under 
        section 515B.3-116.  The master association's lien shall have 
        priority as against the lien of an association or property 
        owner's association subject to the master association, 
        regardless of when the lien arose or was perfected. 
           (1) Master association common expenses shall be allocated 
        among the members of the master association in a fair and 
        equitable manner.  If the members are associations or property 
        owners' associations, then the master assessments may be 
        allocated among and levied directly against the units or other 
        parcels owned by the members of the association or property 
        owner's association.  If so provided in the master declaration, 
        master assessments levied against a member association or 
        property owner's association are allocated among and levied 
        against the units or other parcels owned by the members of the 
        association or property owner's association.  If applicable and 
        appropriate, the formulas and principles described in section 
        515B.2-108, subsections (b), (c), (d), and (e), shall be used in 
        making the allocations.  The assessment formulas and procedures 
        described in the declarations of any common interest communities 
        or any instruments governing other real estate subject to the 
        master association shall not conflict with the formulas and 
        procedures described in the master declaration. 
           (2) The master declaration may exempt from liability any 
        person authorized by subsection (c)(3) to appoint the members of 
        the master association board for master association common 
        expenses, and exempt any unit owned by the person from a lien 
        for such common expenses, until a dwelling constituting or 
        located within the unit is substantially completed.  Substantial 
        completion shall be evidenced by a certificate of occupancy in a 
        jurisdiction that issues that certificate. 
           (k) (j) A master association shall not be used, directly or 
        indirectly, to avoid or nullify any warranties or other 
        obligations for which a declarant of a common interest community 
        subject to the master association is responsible, or to 
        otherwise avoid the requirements of this chapter. 
           Sec. 14.  Minnesota Statutes 1998, section 515B.2-122, is 
        amended to read: 
           515B.2-122 [MERGER OR CONSOLIDATION OF COMMON INTEREST 
        COMMUNITIES.] 
           (a) Any two or more common interest communities of the same 
        form of ownership, by agreement of the unit owners as provided 
        in subsection (b), may be merged or consolidated into a single 
        common interest community.  The resultant common interest 
        community shall be the legal successor, for all purposes, of all 
        of the preexisting common interest communities, and the 
        operations and activities of the preexisting common interest 
        communities are merged or consolidated into a single common 
        interest community that holds all powers, rights, obligations, 
        assets, and liabilities of the preexisting common interest 
        communities. 
           (b) An agreement of two or more common interest communities 
        to merge or consolidate pursuant to subsection (a) shall be 
        evidenced by an agreement executed by the president of the 
        association of each of the preexisting common interest 
        communities following approval by owners of units to which are 
        allocated the votes in each common interest community required 
        to terminate that common interest community. 
           (c) Every merger or consolidation agreement shall contain: 
           (1) the names of the resultant common interest community 
        and its association; 
           (2) the number of the resultant common interest community, 
        which shall be a new common interest community number assigned 
        to the resultant common interest community by the recording 
        officer; 
           (3) a requirement that the associations of the common 
        interest communities shall be merged pursuant to the applicable 
        statute; 
           (4) a reallocation of the allocated interests in the 
        preexisting common interest communities among the units of the 
        resultant common interest community by stating the reallocations 
        and the formulas upon which they are based; 
           (5) a statement that the common interest communities have 
        approved and will, within 90 days after the execution of the 
        merger agreement, record a declaration as provided in subsection 
        (d) or commence an appropriate proceeding to accomplish the 
        recording if necessary. 
           (d) A declaration, including a new or amended CIC plat if 
        necessary, complying with this chapter and governing the 
        resultant common interest community shall be recorded in every 
        county in which a portion of each preexisting common interest 
        community is located, and the merger or consolidation is not 
        effective until the declaration is recorded.  In addition to 
        other matters required by this chapter, the declaration shall 
        contain: 
           (1) a reference to the names and numbers of the preexisting 
        common interest communities, and the names of their 
        associations; 
           (2) a statement that the preexisting common interest 
        communities and their associations have been merged or 
        consolidated pursuant to this chapter and the applicable 
        corporate statute, and 
           (3) a statement that the declaration supersedes the 
        declarations of the preexisting common interest communities and 
        governs the resultant common interest community. 
           (e) Upon approval as provided in subsection (b), the 
        association for the resultant common interest community may 
        execute the declaration, and a new or amended CIC plat if 
        necessary, on behalf of the unit owners of, and all other 
        persons holding an interest in, the units or other property that 
        is a part of the preexisting common interest communities, and to 
        do all other acts necessary to merge or consolidate the common 
        interest communities. 
           (f) The declaration and CIC plat for the resultant common 
        interest community may be recorded without the necessity of 
        paying the current or delinquent real estate taxes on any of the 
        units. 
           Sec. 15.  [515B.2-124] [SEVERANCE OF COMMON INTEREST 
        COMMUNITY.] 
           (a) Unless the declaration provides otherwise, a part of a 
        common interest community containing one or more units may be 
        severed from the common interest community, subject to the 
        requirements of this section.  Subject to any additional 
        requirements contained in the declaration, the severance shall 
        be approved in a written severance agreement satisfying the 
        requirements of this section, executed by: 
           (1) unit owners entitled to cast at least 67 percent of the 
        votes in the association, which approval shall include the 
        approval of unit owners entitled to cast a majority of the votes 
        allocated to units in the remaining common interest community 
        and the approval of unit owners entitled to cast a majority of 
        the votes allocated to units in the part of the common interest 
        community being severed; 
           (2) declarant until the earlier of five years after the 
        recording of the declaration or the time at which declarant no 
        longer owns an unsold unit; and 
           (3) in the case of a cooperative, all holders of mortgages 
        or contracts for deed on the entire real estate constituting the 
        cooperative. 
           (b) The declaration may specify a smaller percentage for 
        unit owner approval only if all of the units are restricted to 
        nonresidential use. 
           (c) The severance agreement shall specify a severance date 
        by which the severance of the common interest community shall be 
        accomplished, after which the severance agreement is void.  The 
        severance agreement shall be deemed to grant to the association 
        a power of attorney coupled with an interest to effect the 
        severance of the common interest community on behalf of the unit 
        owners and the holders of all other interests in the units, 
        including without limit the power to execute the amendment to 
        the declaration, any instruments of conveyance, and all related 
        instruments. 
           (d) The severance agreement shall: 
           (1) Approve an amendment to the declaration complying with 
        this chapter, in substantially the same form to be recorded, 
        which, at a minimum, (i) legally describes the real estate 
        constituting the remaining common interest community and the 
        real estate being severed, (ii) restates the number of units in 
        the remaining common interest community, and (iii) reallocates 
        the interests of the unit owners in the remaining common 
        interest community among the remaining units in accordance with 
        the allocation formula set forth in the declaration, and (iv) 
        recites any easements to which the severed portion of the common 
        interest community remains subject. 
           (2) Approve an amendment to the articles of incorporation 
        and bylaws of the remaining common interest community, if 
        necessary. 
           (3) Authorize the association to execute and record the 
        amended declaration, articles of incorporation or bylaws on 
        behalf of the unit owners and all other persons holding an 
        interest in the remaining common interest community, and to take 
        other actions necessary to accomplish the severance of the 
        common interest community. 
           (4) Allocate the assets and liabilities of the association 
        between the association, and (i) a new association formed 
        pursuant to subsection (g), or (ii) the owners of the units 
        being severed, subject to a lien against their interest in the 
        severed real estate or their share in the assets of the 
        association in favor of any person that held a security interest 
        in their unit. 
           (5) If the units that are being severed from the common 
        interest community will not be included in a new common interest 
        community that is (i) formed simultaneously with the severance 
        of the common interest community, and (ii) includes all of the 
        units and substantially all of the common elements being 
        severed, then the agreement shall contain the written consent of 
        holders of first mortgages on all units that are being severed, 
        and shall describe in detail the proposed disposition of all 
        real estate to be severed and all assets of the association 
        allocated to the severed units, and the distribution of the 
        proceeds of the disposition, if any. 
           (e) The severance agreement or a memorandum of it shall be 
        recorded in every county in which a part of the common interest 
        community is located.  The recording of the severance agreement 
        or memorandum of it shall, from the date of recording, 
        constitute notice to all persons subsequently acquiring an 
        interest in the common interest community that the common 
        interest community is being severed, and that those persons 
        acquire their interests subject to the terms and conditions 
        contained in the severance agreement and the amendment to the 
        declaration. 
           (f) The amendment to the declaration of the remaining 
        common interest community shall be recorded on or before the 
        severance date, or the severance agreement and the amendment to 
        the declaration is void as of the day after the severance date.  
        The recording of the amendment to the declaration shall complete 
        the severance of the common interest community and release the 
        severed part of the common interest community from the 
        declaration without further action by any person. 
           (g) If the unit owners whose units are being severed from 
        the common interest community intend to form a new common 
        interest community, then said unit owners shall unanimously 
        approve a declaration, articles of incorporation and bylaws to 
        govern the new common interest community no later than 60 days 
        before the effective date of the severance.  The declaration 
        creating the new common interest community shall be recorded 
        simultaneously with the amendment to the declaration.  No later 
        than 30 days before the effective date of the severance, the 
        unit owners shall cause the association governing the new common 
        interest community to be created by filing the articles of 
        incorporation of the association with the secretary of state, 
        and shall elect a board of directors to act on behalf of the new 
        association.  The board of directors of the new association 
        shall coordinate the completion of the severance with the board 
        of directors of the existing association.  The existing 
        association shall retain all authority to act on behalf of the 
        common interest community until the amendment to the declaration 
        is recorded. 
           (h) The legal descriptions of the real estate constituting 
        (i) the remaining common interest community, and (ii) the 
        severed portion of the common interest community shall, at the 
        time of recording of the amendment to the declaration referred 
        to in subsection (e), be as follows: 
           (1) In a planned community using a CIC plat that complies 
        with section 515B.2-110, subsection (d), the lot and block 
        descriptions contained in the CIC plat, and any amendments to 
        it, with respect to (i) the remaining common interest community, 
        and (ii) the severed portion of the common interest community. 
           (2) In a condominium, or cooperative or planned community 
        using a CIC plat that complies with section 515B.2-110, 
        subsection (c), (i) the CIC plat description relating to the 
        remaining common interest community, and (ii) the part of the 
        underlying legal description of the real estate in the 
        declaration creating the common interest community, and any 
        amendments to it, relating to the severed part of the common 
        interest community. 
           (3) 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 
        descriptions required by this subsection as of the date of 
        recording of the amendment to the declaration.  In the case of 
        registered property, the registrar of titles shall cancel the 
        existing certificates of title for the severed part of the 
        common interest community and issue certificates of title for 
        the property using the legal descriptions required by this 
        subsection. 
           (i) In a condominium or planned community, if the severed 
        part of the common interest community is not to be reconstituted 
        as a new common interest community following severance, title to 
        the common elements and, in a common interest community in which 
        all units have upper and lower boundaries described in the 
        declaration title to all the real estate in the severed part of 
        the common interest community, vests in the unit owners of the 
        units being severed, upon severance, as tenants in common in 
        proportion to their respective allocated interests in the 
        declaration, 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, and a nonexclusive easement across, over 
        and under any common elements contained in the severed portion 
        of the common interest community for enjoyment, access, 
        utilities, communication services, and other essential services, 
        as applicable. 
           (j) No common interest community shall be severed in such a 
        manner as to materially impair access, utility services, 
        communication services, or other essential services with respect 
        to either the remaining common interest community or the severed 
        part of the common interest community. 
           Sec. 16.  [515B.2-125] [ADDITION OF COMMON ELEMENTS.] 
           (a) Unless the declaration provides otherwise, real estate 
        owned by the association may be added to the common interest 
        community, as common elements only, subject to the requirements 
        of this section.  Subject to any additional requirements 
        contained in the declaration, the addition of the real estate 
        shall be approved by: 
           (1) unit owners entitled to cast at least 67 percent of the 
        votes in the association; 
           (2) declarant until the earlier of (i) five years after the 
        recording of the declaration, or (ii) the time at which 
        declarant no longer owns an unsold unit; and 
           (3) in the case of a cooperative, all holders of mortgages 
        or contracts for deed on the entire real estate constituting the 
        cooperative. 
           (b) The declaration may specify a smaller percentage for 
        unit owner approval only if all of the units are restricted to 
        nonresidential use.  A part of the common elements shall not be 
        designated as limited common elements unless approved 
        unanimously in writing by the unit owners. 
           (c) The approval by the unit owners shall be deemed to 
        grant to the association a power of attorney coupled with an 
        interest to acquire title to the real estate, if not previously 
        acquired, and to add the real estate to the common interest 
        community on behalf of the unit owners and the holders of all 
        other interests in the units, including without limit the power 
        to execute an amendment to the declaration and any other 
        instruments relating to the acquisition. 
           (d) Following the required approvals, the association shall 
        record an amendment to the declaration complying with this 
        chapter, that, at a minimum, (i) legally describes the real 
        estate added, (ii) designates the real estate as part of the 
        common elements, and (iii) subjects the real estate to the 
        declaration. 
           (e) In the case of a common interest community using a plat 
        complying with section 515B.2-110, subsection (c), the 
        association shall record an amended CIC plat reflecting the 
        change in the common elements with the amendment to the 
        declaration.  The recording of the amendment to the declaration, 
        and amended CIC plat if required, shall complete the addition of 
        the real estate without further action by any person. 
           Sec. 17.  Minnesota Statutes 1998, section 515B.3-103, is 
        amended to read: 
           515B.3-103 [DUTY OF BOARD, OFFICERS DURING, AFTER DECLARANT 
        CONTROL.] 
           (a) An association shall be governed by a board of 
        directors.  Except as expressly prohibited by the declaration, 
        the articles of incorporation, bylaws, subsection (b), or other 
        provisions of this chapter, the board may act in all instances 
        on behalf of the association.  In the performance of their 
        duties, the officers and directors are required to exercise (i) 
        if appointed by the declarant, the care required of fiduciaries 
        of the unit owners and (ii) if elected by the unit owners, the 
        care required of a director by section 302A.251 or 317A.251, as 
        applicable. 
           (b) The board may not act unilaterally to amend the 
        declaration, to terminate the common interest community, to 
        elect directors to the board, or to determine the 
        qualifications, powers and duties, or terms of office of 
        directors, but the board may fill vacancies in its membership 
        created other than by removal by the vote of the association 
        members for the unexpired portion of any term. 
           (c) Subject to subsection (d), the declaration may provide 
        for a period of declarant control of the association, during 
        which a declarant, or persons designated by the declarant, may 
        appoint and remove the officers and directors of the association.
        The maximum period of declarant control may extend from the date 
        of the first conveyance of a unit to a unit owner other than a 
        declarant for a period not exceeding five years in the case of a 
        flexible common interest community or three years in the case of 
        any other common interest community.  Regardless of any longer 
        period provided in the declaration or elsewhere, a period of 
        declarant control shall terminate upon the earlier of (i) 
        surrender of control by the declarant or (ii) 60 days after 
        conveyance of 75 percent of the units to unit owners other than 
        a declarant. 
           (d) Not later than 60 days after conveyance of 50 percent 
        of the units that may be created to unit owners other than a 
        declarant or an affiliate of a declarant, a meeting of the unit 
        owners shall be held at which not less than 33-1/3 percent of 
        the members of the board shall be elected by unit owners other 
        than a declarant or an affiliate of a declarant. 
           (e) Not later than Following the termination of any period 
        of declarant control the unit owners shall elect a the board of 
        at least three members.  Thereafter, a majority of the directors 
        shall be unit owners other than a declarant or an affiliate of a 
        declarant.  The remaining directors need not be unit owners 
        unless required by the articles of incorporation, bylaws or 
        declaration.  All unit owners, including the declarant and its 
        affiliates, may cast the votes allocated to any units owned by 
        them.  The board shall elect the officers.  The directors and 
        officers shall take office upon election.  All unit owners, 
        including the declarant and its affiliates, may cast the votes 
        allocated to any units owned by them.  The board shall 
        thereafter be subject to the following requirements. 
           (1) A majority of the directors shall be unit owners other 
        than a declarant or an affiliate of a declarant, or a natural 
        person designated by a unit owner that is not a natural person.  
        The remaining directors need not be unit owners unless required 
        by the articles of incorporation or bylaws. 
           (2) Subject to the requirements of subsection (1), the 
        articles of incorporation or by laws may authorize (i) the 
        appointment or election of one director, who need not be a unit 
        owner, by a declarant or by a person or persons other than a 
        unit owner, (ii) classes of directors, and (iii) the election of 
        certain directors by unit owners of a certain class or classes 
        of units.  The articles of incorporation or bylaws shall not be 
        amended to change or terminate the authorization described in 
        (i) without the written consent of the person possessing the 
        power to appoint or elect. 
           (3) Subject to the requirements of subsection (1), if 
        separate classes of directors are authorized under subsection 
        (2), the articles of incorporation or bylaws may authorize class 
        voting by classes of directors on specified issues affecting 
        only a certain class of units, or to protect the legitimate 
        interests of the class.  A person shall not use special class 
        voting to evade any limit imposed on declarants by this chapter. 
           (4) The board shall elect the officers.  The directors and 
        officers shall take office upon election. 
           (f) In determining whether the period of declarant control 
        has terminated under subsection (c), or whether unit owners 
        other than a declarant are entitled to elect members of the 
        board of directors under subsection (d), the percentage of the 
        units which has been conveyed shall be calculated based upon the 
        assumption that all units which the declarant has built or 
        reserved the right to build in the declaration are included in 
        the common interest community.  The percentages referred to in 
        subsections (c) and (d) shall be calculated without reference to 
        units that are auxiliary to other units, such as garage units or 
        storage units.  A person shall not use a master association or 
        other device to evade the requirements of this section. 
           (g) Except as otherwise provided in this subsection, 
        meetings of the board of directors must be open to the unit 
        owners.  To the extent practicable, the board shall give 
        reasonable notice to the unit owners of the date, time, and 
        place of a board meeting.  If the date, time, and place of 
        meetings are provided for in the declaration, articles, or 
        bylaws, announced at a previous meeting of the board, posted in 
        a location accessible to the unit owners and designated by the 
        board from time to time, or if an emergency requires immediate 
        consideration of a matter by the board, notice is not required.  
        "Notice" has the meaning given in section 317A.011, subdivision 
        14.  Meetings may be closed to discuss the following: 
           (1) personnel matters; 
           (2) pending or potential litigation, arbitration or other 
        potentially adversarial proceedings, between unit owners, 
        between the board or association and unit owners, or other 
        matters in which any unit owner may have an adversarial 
        interest, if the board determines that closing the meeting is 
        necessary to discuss strategy or to otherwise protect the 
        position of the board or association or the privacy of a unit 
        owner or occupant of a unit; or 
           (3) criminal activity arising within the common interest 
        community if the board determines that closing the meeting is 
        necessary to protect the privacy of the victim or that opening 
        the meeting would jeopardize investigation of the activity.  
           Nothing in this subsection imposes a duty on the board to 
        provide special facilities for meetings.  The failure to give 
        notice as required by this subsection shall not invalidate the 
        board meeting or any action taken at the meeting.  The minutes 
        of any part of a meeting that is closed under this subsection 
        may be kept confidential at the discretion of the board. 
           Sec. 18.  Minnesota Statutes 1998, section 515B.3-105, is 
        amended to read: 
           515B.3-105 [TERMINATION OF DECLARANT'S CONTRACTS, LEASES.] 
           If entered into prior to expiration of the period of 
        declarant control pursuant to section 515B.3-103, (i) any 
        management contract, employment contract, or lease of 
        recreational facilities, units, garages or other parking 
        facilities, (ii) any contract, lease or license binding the 
        association to which a declarant or an affiliate of a declarant 
        is a party, or (iii) any contract, lease or license binding the 
        association or any unit owner other than the declarant or an 
        affiliate of the declarant which is not bona fide or which was 
        unconscionable to the unit owners at the time entered into under 
        the circumstances then prevailing, may be terminated without 
        penalty by the association at any time after the expiration of 
        declarant control upon not less than 90 days' notice to the 
        other party.  If, during the suspension period described in 
        subsection 2-121(c)(3), a contract, lease, or license of a type 
        described in this section is entered into and is binding upon a 
        master association, then the master association, and not any 
        association, may terminate the contract, lease, or license under 
        the procedures in this section.  This section does not apply to 
        (i) any lease the termination of which would terminate the 
        common interest community or, (ii) a proprietary lease, or (iii) 
        in the case of a cooperative, a mortgage, or contract for deed 
        encumbering all real estate constituting the common interest 
        community. 
           Sec. 19.  Minnesota Statutes 1998, section 515B.3-106, is 
        amended to read: 
           515B.3-106 [BYLAWS; ANNUAL REPORT.] 
           (a) A common interest community shall have bylaws which 
        comply with this chapter and the requirements of the statute 
        under which the association is incorporated.  The bylaws and any 
        amendments may be recorded, but need not be recorded to be 
        effective unless so provided in the bylaws. 
           (b) The bylaws shall provide that, in addition to any 
        statutory requirements: 
           (1) A meeting of the members shall be held at least once 
        each year, and a specified officer of the association shall give 
        notice of the meeting as provided in section 515B.3-108. 
           (2) An annual report shall be prepared by the association 
        and a copy of the report shall be provided to each unit owner at 
        or prior to the annual meeting. 
           (c) The annual report shall contain at a minimum: 
           (1) a statement of any capital expenditures in excess of 
        two percent of the current budget or $5,000, whichever is 
        greater, approved by the association for the current fiscal year 
        or succeeding two fiscal years; 
           (2) a statement of the balance in any reserve or 
        replacement fund; 
           (3) a copy of the statement of revenues and expenses for 
        the association's last fiscal year, and a balance sheet as of 
        the end of said fiscal year; 
           (4) a statement of the status of any pending litigation or 
        judgments to which the association is a party; 
           (5) a statement detailed description of the insurance 
        coverage provided by the association including a statement as to 
        which, if any, of the items referred to in section 515B.3-113, 
        subsection (b), are insured by the association; and 
           (6) a statement of the total past due assessments on all 
        units, current as of not more than 60 days prior to the date of 
        the meeting. 
           Sec. 20.  Minnesota Statutes 1998, section 515B.3-110, is 
        amended to read: 
           515B.3-110 [VOTING; PROXIES.] 
           (a) At any meeting of the association an owner or the 
        holder of the owner's proxy shall be entitled to cast the vote 
        which is allocated to the unit.  If there is more than one owner 
        of a unit, only one of the owners may cast the vote.  If the 
        owners of a unit fail to agree as to who shall cast the vote, 
        the vote shall not be cast. 
           (b) If permitted by the articles or bylaws, votes allocated 
        to a unit may be cast pursuant to a proxy executed by the unit 
        owner entitled to cast the vote for that unit.  The board may 
        specify the form of proxy and proxy rules, consistent with law. 
           (c) The entire vote on any single issue (except the 
        election of directors), may be by mailed ballots, subject to (i) 
        any prohibition or requirement contained in the articles of 
        incorporation, bylaws, or declaration and (ii) any requirements 
        of the statute under which the association is created.  Such a 
        vote shall have the force and effect of a vote taken at a 
        meeting; provided, that the total votes cast are at least equal 
        to the votes required for a quorum.  The board shall set a 
        voting period within which the ballots must be returned, which 
        period shall be not less than ten nor more than 30 days after 
        the date of mailing or hand delivery of the ballots to the 
        owners.  The board of directors shall provide written notice of 
        the results of the vote to the members within 30 days after the 
        expiration of the voting period.  All requirements in this 
        chapter, the declaration or the bylaws for a meeting of the 
        members, or being present in person, shall be deemed satisfied 
        by a vote taken by mail in compliance with the requirements of 
        this section. 
           (d) The articles of incorporation or bylaws may authorize 
        class voting by unit owners for directors or on specified issues 
        affecting the class.  Class voting may only be used to address 
        operational, physical, or administrative differences within the 
        common interest community.  A declarant shall not use class 
        voting to evade any limit imposed on declarants by this chapter 
        and units shall not constitute a class because they are owned by 
        a declarant.  
           (e) The declaration or bylaws may provide that votes on 
        specified matters affecting the common interest community be 
        cast by lessees or secured parties rather than unit owners; 
        provided that (i) the provisions of subsections (a), (b), and (c)
        apply to those persons as if they were unit owners; (ii) unit 
        owners who have so delegated their votes to other persons may 
        not cast votes on those specified matters; (iii) lessees or 
        secured parties are entitled to notice of meetings, access to 
        records, and other rights respecting those matters as if they 
        were unit owners, and (iv) the lessee or secured party has filed 
        satisfactory evidence of its interest with the secretary of the 
        association prior to the meeting.  Unit owners must also be 
        given notice, in the manner provided in section 515B.3-108(b), 
        of meetings at which lessees or secured parties are entitled to 
        vote. 
           (e) (f) No votes allocated to a unit owned by the 
        association may be cast nor counted toward a quorum. 
           Sec. 21.  Minnesota Statutes 1998, 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, or structures within units, sharing or having 
        contiguous walls, siding or roofs, the insurance maintained 
        under subsection (a)(1) shall include the those units, or 
        structures within those units, and the common elements.  The 
        insurance need not cover improvements and betterments to the 
        units installed by unit owners, but the following items within 
        the units:  (i) ceiling or wall finishing materials, (ii) floor 
        coverings, (iii) cabinetry, (iv) finished millwork, (v) 
        electrical or plumbing fixtures serving a single unit, (vi) 
        built-in appliances, or (vii) other improvements and 
        betterments, regardless of when installed.  If any 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 60 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 unit 
        owner and holder of a first mortgage on a unit or assigned 
        limited common element which will not be rebuilt, vote not to 
        rebuild.  Subject to subsection (b), 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. 22.  Minnesota Statutes 1998, section 515B.3-115, is 
        amended to read: 
           515B.3-115 [ASSESSMENTS FOR COMMON EXPENSES.] 
           (a) The obligation of a unit owner to pay common expense 
        assessments shall be as follows: 
           (1) If a common expense assessment has not been levied, the 
        declarant shall pay all accrued expenses of the common interest 
        community.  
           (2) If a common expense assessment has been levied, all 
        unit owners including the declarant shall pay the assessments 
        allocated to their units, except as otherwise permitted by this 
        section.  Subject to the requirements of this section, a 
        declarant may institute one, but not both, of the alternative 
        assessment programs described in subsections (a)(1) and (a)(2), 
        whereby: subject to subsection (b). 
           (1) if a common expense assessment has been levied, the 
        purchaser shall pay when due only the common expenses up to a 
        specified limit guaranteed by the declarant, and the declarant 
        shall pay all common expenses in excess of the limit; or 
           (2) if a common expense assessment has been levied in a 
        planned community, the declarant may limit its liability for 
        assessments on units owned by it to 25 percent or any greater 
        percentage of any assessment levied until such time as a 
        certificate of occupancy is issued by the municipality in which 
        the common interest community is located for the unit or units 
        owned by the declarant.  
           (3) Notwithstanding subsections (a)(1), (a)(2), and (b), if 
        the association maintains the exteriors of the buildings 
        constituting or contained within the units, that part of any 
        assessment that is allocated to replacement reserves referred to 
        in section 515B.3-114 shall be fully levied against a unit, 
        including any unit owned by a declarant, on the earlier of 
        substantial completion of the exterior of (i) the building 
        containing the unit or (ii) any building located within the unit.
           (b) The alternative assessment programs described in 
        subsection (a)(1) or (2), shall be permitted only by including 
        in the declaration, and the disclosure statement required by 
        section 515B.4-102, provisions authorizing declarant to 
        establish an alternative assessment program and a detailed 
        explanation of the program, including at a minimum, as 
        applicable, (i) the maximum amount of any guaranty on a monthly 
        and aggregate basis with respect to each type of unit, (ii) the 
        minimum and maximum duration of the alternative assessment 
        program, (iii) the time when the declarant's authority to 
        commence the alternative assessment program expires, which shall 
        be no later than the expiration of any period of declarant 
        control, and (iv) a statement that the alternative assessment 
        program will have no effect on the level of services for items 
        set forth in the association's budget, or a statement that no 
        assurances are made in those regards. Subject to subsection 
        (a)(3), if the declaration so provides, a declarant's liability, 
        and the assessment lien, for assessments, other than replacement 
        reserves, on any unit owned by the declarant may be limited to 
        25 percent or any greater percentage of any assessment levied, 
        until the unit or any building located in it is substantially 
        completed.  Substantial completion shall be evidenced by a 
        certificate of occupancy in any jurisdiction that issues the 
        certificate. 
           (c) Notwithstanding any disclosure in the declaration or 
        disclosure statement, the declarant shall give the unit owners 
        at least 60 days' prior notice of the termination of the 
        alternative assessment program, subject to any minimum duration 
        described in the declaration and disclosure statement. 
           (d) Any alternative assessment program instituted by 
        declarant shall not affect declarant's obligation to fund the 
        reserves disclosed in the association's budget included in the 
        disclosure statement or otherwise approved by the association. 
           (e) Any representations or agreements made by a declarant 
        with respect to an alternative assessment program shall be 
        enforceable against declarant by any unit owner or by the 
        association. 
           (f) After an assessment has been levied by the association, 
        assessments shall be levied at least annually, based upon a 
        budget approved at least annually by the association. 
           (g) (d) Except as modified by subsections (a)(1) and (2), 
        (h), (i) and (j), all common expenses shall be assessed against 
        all the units in accordance with the allocations established by 
        the declaration pursuant to section 515B.2-108. 
           (h) (e) Unless otherwise required by the declaration: 
           (1) any common expense associated with the maintenance, 
        repair, or replacement of a limited common element shall be 
        assessed against the units to which that limited common element 
        is assigned, equally, or in any other proportion the declaration 
        provides; 
           (2) any common expense or portion thereof benefiting fewer 
        than all of the units may be assessed exclusively against the 
        units benefited, equally, or in any other proportion the 
        declaration provides; 
           (3) the costs of insurance may be assessed in proportion to 
        risk or coverage, and the costs of utilities may be assessed in 
        proportion to usage; 
           (4) reasonable attorneys fees and costs incurred by the 
        association in connection with (i) the collection of assessments 
        and, (ii) the enforcement of this chapter, the articles, bylaws, 
        declaration, or rules and regulations, against a unit owner, may 
        be assessed against the unit owner's unit; and 
           (5) fees, charges, late charges, fines and interest may be 
        assessed as provided in section 515B.3-116(a). 
           (i) (f) Assessments levied under section 515B.3-116 to pay 
        a judgment against the association may be levied only against 
        the units in the common interest community at the time the 
        judgment was entered, in proportion to their common expense 
        liabilities. 
           (j) (g) If any damage to the common elements or another 
        unit is caused by the act or omission of any unit owner, or 
        occupant of a unit, or their invitees, the association may 
        assess the costs of repairing the damage exclusively against the 
        unit owner's unit to the extent not covered by insurance. 
           (k) (h) Subject to any shorter period specified by the 
        declaration or bylaws, if any installment of an assessment 
        becomes more than 60 days past due, then the association may, 
        upon ten days' written notice to the unit owner, declare the 
        entire amount of the assessment immediately due and payable in 
        full. 
           (l) (i) If common expense liabilities are reallocated for 
        any purpose authorized by this chapter, common expense 
        assessments and any installment thereof not yet due shall be 
        recalculated in accordance with the reallocated common expense 
        liabilities. 
           Sec. 23.  Minnesota Statutes 1998, 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 encumbering the fee 
        simple interest in 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 a lien in favor of the association for 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.  The 
        commencement of an action to recover the sums is not an election 
        of remedies if it is dismissed before commencement of 
        foreclosure of the lien provided for by this section.  
           (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 authorized by the declaration or bylaws, 
        notwithstanding the provisions of section 582.01, 
        subdivision subdivisions 1 and 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. 24.  Minnesota Statutes 1998, section 515B.3-121, is 
        amended to read: 
           515B.3-121 [ACCOUNTING CONTROLS.] 
           (a) Subject to any additional or greater requirements set 
        forth in the declaration or bylaws, a review of the 
        association's financial statements shall be made at the end of 
        the association's fiscal year, unless prior to 30 60 days after 
        the end of that fiscal year, at a meeting or by mailed ballot, 
        unit owners of units to which at least 30 percent of the votes 
        in the association are allocated vote to waive the review 
        requirement for that fiscal year.  A waiver vote shall not apply 
        to more than one fiscal year, and shall not affect the board's 
        authority to cause a review or audit to be made.  The reviewed 
        financial statements shall be delivered to all members of the 
        association within 120 180 days after the end of the 
        association's fiscal year. 
           (b) The review shall be made by a licensed, independent 
        certified public accountant.  A licensed, independent certified 
        public accountant means an accountant who (i) is not an employee 
        of the declarant or its affiliates, (ii) is professionally 
        independent of the control of the declarant or its affiliates, 
        (iii) is licensed by the Minnesota state board of accountancy 
        and (iv) satisfies the tests for independence as promulgated by 
        the American Institute of Certified Public Accountants. 
           (c) Where the financial statements are prepared by an 
        independent certified public accountant, they shall be prepared 
        in accordance with generally accepted accounting principles as 
        established from time to time by the American Institute of 
        Certified Public Accountants, and shall be reviewed in 
        accordance with standards for accounting and review services.  
        In such case, the financial statements shall be presented on the 
        full accrual basis using an accounting format that separates 
        operating activity from replacement reserve activity. 
           Sec. 25.  Minnesota Statutes 1998, section 515B.4-101, is 
        amended to read: 
           515B.4-101 [APPLICABILITY; DELIVERY OF DISCLOSURE 
        STATEMENT.] 
           (a) Sections 515B.4-101 through 515B.4-118 apply to all 
        units subject to this chapter, except as provided in subsection 
        (c) or as modified or waived by agreement of purchasers of a 
        unit which is restricted to nonresidential use. 
           (b) Subject to subsection subsections (a) and (c), a 
        declarant who offers a unit to a purchaser shall deliver to the 
        purchaser a current disclosure statement which complies with the 
        requirements of section 515B.4-102.  The disclosure statement 
        shall include any material amendments to the disclosure 
        statement made prior to the conveyance of the unit to the 
        purchaser.  The declarant shall be liable to the purchaser to 
        whom it delivered the disclosure statement for any false or 
        misleading statement set forth therein or for any omission of a 
        material fact therefrom. 
           (c) Neither a disclosure statement nor a resale disclosure 
        certificate need be prepared or delivered in the case of: 
           (1) a gratuitous transfer; 
           (2) a transfer pursuant to a court order; 
           (3) a transfer to a government or governmental agency; 
           (4) a transfer to a secured party by foreclosure or deed in 
        lieu of foreclosure; 
           (5) an option to purchase a unit, until exercised; 
           (6) a transfer to a person who "controls" or is "controlled 
        by," the grantor as those terms are defined with respect to a 
        declarant under section 515B.1-103(2); 
           (7) a transfer by inheritance; 
           (8) a transfer of special declarant rights under section 
        515B.3-104; or 
           (9) a transfer in connection with a change of form of 
        common interest community under section 515B.2-123. 
           (d) A purchase agreement for a unit shall contain the 
        following notice:  "The following notice is required by 
        Minnesota Statutes.  The purchaser is entitled to receive a 
        disclosure statement or resale disclosure certificate, as 
        applicable.  The disclosure statement or resale disclosure 
        certificate contains important information regarding the common 
        interest community and the purchaser's cancellation rights." 
           Sec. 26.  Minnesota Statutes 1998, section 515B.4-102, is 
        amended to read: 
           515B.4-102 [DISCLOSURE STATEMENT; GENERAL PROVISIONS.] 
           (a) A disclosure statement shall fully and accurately 
        disclose: 
           (1) the name and, if available, the number of the common 
        interest community; 
           (2) the name and principal address of the declarant; 
           (3) the number of units in the common interest community 
        and a statement that the common interest community is either a 
        condominium, cooperative, or planned community; 
           (4) a general description of the common interest community, 
        including, to the extent possible at a minimum, (i) the types 
        and number of buildings, (ii) the number of dwellings per 
        building, (iii) the type of construction, (iv) whether the 
        common interest community involves new construction or 
        rehabilitation, (v) whether any building was wholly or partially 
        occupied, for any purpose, before it was added to the common 
        interest community and the nature of the occupancy, and (vi) a 
        general description of any roads, trails, or utilities that are 
        located on the common elements and that the association or a 
        master association will be required to maintain; 
           (5) declarant's schedule of commencement and completion of 
        construction of any buildings and other improvements that the 
        declarant is obligated to build pursuant to section 515B.4-117; 
           (6) any expenses or services, not reflected in the budget, 
        that the declarant pays or provides, which may become a common 
        expense of the association; the projected common expense 
        attributable to each of those expenses or services for the 
        association; and a detailed an explanation of any 
        alternative declarant's limited assessment program established 
        pursuant to liability under section 515B.3-115, subsection (b) 
        and (d); 
           (7) any initial or special fee due from the purchaser to 
        the declarant or the association at closing, together with a 
        description of the purpose and method of calculating the fee; 
           (8) identification of any liens, defects, or encumbrances 
        which will continue to affect the title to a unit or to any real 
        property owned by the association after the contemplated 
        conveyance; 
           (9) a description of any financing offered or arranged by 
        the declarant; 
           (10) a statement as to whether the common interest 
        community has received application has been made for any final 
        project approvals for the common interest community from the 
        Federal National Mortgage Association (FNMA), Federal Home Loan 
        Mortgage Corporation (FHLMC), Department of Housing and Urban 
        Development (HUD) or Department of Veterans Affairs (VA), and 
        which, if any, such final approvals have been received; 
           (11) the terms of any warranties provided by the declarant, 
        including copies of chapter 327A, and sections 515B.4-112 
        through 515B.4-115, and a statement of any limitations on the 
        enforcement of warranties or on damages; 
           (12) a statement that:  (i) within 15 ten days after the 
        receipt of a disclosure statement, a purchaser may cancel any 
        contract for the purchase of a unit from a declarant; provided, 
        that the right to cancel terminates upon the purchaser's 
        voluntary acceptance of a conveyance of the unit from the 
        declarant; (ii) if a purchaser receives a disclosure statement 
        more than 15 ten days before signing a purchase agreement, the 
        purchaser cannot cancel the purchase agreement; and (iii) if a 
        declarant obligated to deliver a disclosure statement fails to 
        deliver a disclosure statement which substantially complies with 
        this chapter to a purchaser to whom a unit is conveyed, the 
        declarant shall be liable to the purchaser as provided in 
        section 515B.4-106(d); 
           (13) a statement disclosing to the extent of the 
        declarant's or an affiliate of a declarant's actual knowledge, 
        after reasonable inquiry, any unsatisfied judgments or lawsuits 
        to which the association is a party, and the status of those 
        lawsuits which are material to the common interest community or 
        the unit being purchased; 
           (14) a statement that any earnest money paid in connection 
        with the purchase of a unit will be held in an escrow account 
        until closing, or until the termination of the purchase 
        agreement, and (i) describing the conditions under which earnest 
        money will be held in and disbursed from the escrow account, as 
        set forth in section 515B.4-109, (ii) that the earnest money 
        will be returned to the purchaser if the purchaser cancels the 
        contract pursuant to section 515B.4-106, together with and (iii) 
        setting forth the name and address of the escrow agent; 
           (15) a detailed description of the insurance coverage 
        provided by the association for the benefit of unit owners, 
        including any fixtures, decorating items or construction a 
        statement as to which, if any, of the items within a unit which 
        are not required to be referred to in section 515B.3-113, 
        subsection (b), are insured by the association; 
           (16) any current or expected fees or charges, other than 
        assessments for common expenses, to be paid by unit owners for 
        the use of the common elements or any other improvements or 
        facilities; 
           (17) the financial arrangements, including any 
        contingencies, which have been made to provide for completion of 
        all improvements that the declarant is obligated to build 
        pursuant to section 515B.4-118, or a statement that no such 
        arrangements have been made; 
           (18) in a cooperative:  (i) whether the unit owners will be 
        entitled for federal and state tax purposes, to deduct payments 
        made by the association for real estate taxes and interest paid 
        to the holder of a security interest encumbering the 
        cooperative; and (ii) a statement as to the effect on the unit 
        owners if the association fails to pay real estate taxes or 
        payments due the holder of a security interest encumbering the 
        cooperative; 
           (19) a statement:  (i) that real estate taxes for the unit 
        or any real property owned by the association are not delinquent 
        or, if there are delinquent real estate taxes, describing the 
        property for which the taxes are delinquent;, stating the amount 
        of the delinquent taxes, interest and penalties;, and stating 
        the years for which taxes are delinquent;, and (ii) setting 
        forth the amount of the real estate taxes, including the amount 
        of any special assessment certified for payment with the real 
        estate taxes, due and payable with respect to the unit for which 
        the disclosure statement is given in the year in which the 
        disclosure statement is given, if real estate taxes have been 
        separately assessed against the unit; 
           (20) if the association or the purchaser of the unit will 
        be a member of a master association, a statement to that effect, 
        and all of the following information with respect to the master 
        association:  (i) a copy of the declaration, if any, (other than 
        any CIC plat), the articles of incorporation, bylaws, and rules 
        and regulations for the master association, together with any 
        amendments thereto; (ii) the name, address and general 
        description of the master association, including a general 
        description of any other association, unit owners, or other 
        persons which are or may become members, and a general 
        description of the relationship between the master association 
        and its members; (iii) a description of any nonresidential use 
        permitted on any property subject to the master association; 
        (iv) a statement as to the estimated maximum number of 
        associations, unit owners or other persons which may become 
        members of the master association, and the degree and period of 
        control of the master association by a declarant or other 
        person; (v) a description of, and the schedule of commencement 
        and completion of, any buildings and other improvements that the 
        master association, a declarant or other person, as the case may 
        be, is obligated to build in which the members of the master 
        association have or may have an interest any facilities intended 
        for the benefit of the members of the master association and not 
        located on property owned or controlled by a member; (vi) the 
        financial arrangements, including any contingencies, which have 
        been made to provide for completion of the buildings and 
        improvements facilities referred to in subsection (v), or a 
        statement that no arrangements have been made; (vii) any current 
        balance sheet of the master association, which shall include 
        with respect to the master association those items set forth in 
        section 515B.4-102(a)(23)(i) to (iv), and a projected or current 
        annual budget, as applicable, which budget shall include with 
        respect to the master association those items in paragraph (23), 
        clauses (i) through (iv); (viii) a description of any expenses 
        or services provided by the master association to its members 
        and any current or projected assessments attributable to the 
        members of the master association for the services not reflected 
        in the budget, paid for or provided by a declarant or a person 
        executing the master declaration, which may become an expense of 
        the master association in the future; (ix) a description of any 
        powers delegated to and accepted by the master association 
        pursuant to section 515B.2-121(c)(f)(2); (x) identification of 
        any liens, defects or encumbrances on or affecting that will 
        continue to affect title to property in which the members of the 
        master association have or may have any interest owned or 
        operated by the master association for the benefit of its 
        members; (xi) the terms of any warranties provided by any person 
        for construction of buildings or other improvements facilities 
        in which the members of the master association have or may have 
        an interest by virtue of membership in the master association, 
        and any known defects in the buildings or other improvements 
        facilities which would violate the standards described in 
        section 515B.4-112(b); (xii) a statement disclosing, to the 
        extent of the declarant's knowledge, after inquiry of the master 
        association, any unsatisfied judgments or lawsuits to which the 
        master association is a party, and the status of those lawsuits 
        which are material to the master association; (xiii) a 
        description of any insurance coverage provided for the benefit 
        of its members by the master association; and (xiv) any current 
        or expected fees or charges, other than assessments by the 
        master association, to be paid by members of the master 
        association for the use of any improvements, facilities or 
        amenities in which they have or may have an interest intended 
        for the benefit of the members; 
           (21) a statement as to whether the unit will be 
        substantially completed at the time of conveyance to a 
        purchaser, and if not substantially completed, who is 
        responsible to complete and pay for the construction of the 
        unit; 
           (22) a copy of the declaration and any amendments thereto, 
        (exclusive of the CIC plat), any other recorded covenants, 
        conditions restrictions, and reservations affecting the common 
        interest community; the articles of incorporation, bylaws and 
        any rules or regulations of the association; any agreement 
        excluding or modifying any implied warranties; any agreement 
        reducing the statute of limitations for the enforcement of 
        warranties; any contracts or leases to be signed by purchaser at 
        closing; and a brief narrative description of any contracts or 
        leases that are or may be subject to cancellation by the 
        association under section 515B.3-105; and 
           (23) any current balance sheet for the association; a 
        projected annual budget for the association for the year in 
        which the first unit is conveyed to a purchaser, and thereafter 
        the current annual budget of the association; and a statement 
        identifying the party responsible for the preparation of the 
        budget.  The budget shall include, without limitation:  (i) a 
        statement of the amount included in the budget as a reserve for 
        maintenance, repair and replacement; (ii) a statement of any 
        other reserves; (iii) the projected common expense for each 
        category of expenditures for the association; and (iv) the 
        projected monthly common expense assessment for each type of 
        unit. 
           (b) A declarant shall promptly amend the disclosure 
        statement to reflect any material change in the information 
        required by this chapter. 
           (c) The master association, within ten days after a request 
        by a declarant, or any holder of declarant rights, or the 
        authorized representative of any of them, shall furnish the 
        information required to be provided by subsection (a)(20).  A 
        declarant or other person who provides information pursuant to 
        subsection (a)(20) is not liable to the purchaser for any 
        erroneous information if the declarant or other person:  (i) is 
        not an affiliate of or related in any way to a person authorized 
        to appoint the master association board pursuant to section 
        515B.2-121(h)(c)(3), and (ii) has no actual knowledge that the 
        information is incorrect. 
           Sec. 27.  Minnesota Statutes 1998, section 515B.4-106, is 
        amended to read: 
           515B.4-106 [PURCHASER'S RIGHT TO CANCEL.] 
           (a) A person required to deliver a disclosure statement 
        pursuant to section 515B.4-101(b) shall provide at least one of 
        the purchasers of the unit with a copy of the disclosure 
        statement and all amendments thereto before conveyance of the 
        unit.  If a purchaser is not given a disclosure statement more 
        than 15 ten days before execution of the purchase agreement, the 
        purchaser may, before conveyance, cancel the purchase agreement 
        within 15 ten days after first receiving the disclosure 
        statement. If a purchaser is given the disclosure statement more 
        than 15 ten days before execution of a the purchase agreement 
        for the unit, the purchaser may not cancel the purchase 
        agreement pursuant to this section.  Except as expressly 
        provided in this chapter, the ten-day rescission period cannot 
        be waived. 
           (b) If an amendment to the disclosure statement materially 
        and adversely affects a purchaser, then the purchaser shall have 
        15 days after delivery of the amendment to cancel the purchase 
        agreement in accordance with this section. 
           (c) If a purchaser elects to cancel a purchase agreement 
        pursuant to this section, the purchaser may do so by giving 
        notice thereof pursuant to section 515B.1-115.  Cancellation is 
        without penalty, and all payments made by the purchaser before 
        cancellation shall be refunded promptly.  Notwithstanding 
        anything in this section to the contrary, the purchaser's 
        cancellation rights under this section terminate upon the 
        purchaser's acceptance of a conveyance of the unit. 
           (d) If a declarant obligated to deliver a disclosure 
        statement fails to deliver to the purchaser a disclosure 
        statement which substantially complies with this chapter, the 
        declarant shall be liable to the purchaser in the amount of 
        $1,000, in addition to any damages or other amounts recoverable 
        under this chapter or otherwise.  Any action brought under this 
        subsection shall be commenced within the time period specified 
        in section 515B.4-115, subsection (a). 
           Sec. 28.  Minnesota Statutes 1998, section 515B.4-107, is 
        amended to read: 
           515B.4-107 [RESALE OF UNITS.] 
           (a) In the event of a resale of a unit by a unit owner 
        other than a declarant, unless exempt under section 
        515B.4-101(c), the unit owner shall furnish to a purchaser, 
        before execution of any purchase agreement for a unit or 
        otherwise before conveyance, the following documents relating to 
        the association or to the master association, if applicable: 
           (1) copies of the declaration (other than any CIC plat), 
        the articles of incorporation and bylaws, any rules and 
        regulations, and any amendments thereto; 
           (2) the organizational and operating documents relating to 
        the master association, if any; and 
           (3) a resale disclosure certificate from the association 
        dated not more than 90 days prior to the date of the purchase 
        agreement or the date of conveyance, whichever is earlier, 
        containing the information set forth in subsection (b). 
           (b) The resale disclosure certificate shall contain the 
        following information: 
           (1) a statement disclosing any right of first refusal or 
        other restraint on the free alienability of the unit contained 
        in the declaration, articles of incorporation, bylaws, rules and 
        regulations, or any amendment thereof; 
           (2) a statement setting forth the amount of the monthly 
        installments of common expense assessments, including special 
        assessments, if any, and the amount of any due and unpaid 
        regular or special assessments, fines or other charges payable 
        with respect to the unit;: 
           (i) the installments of annual common expense assessments 
        payable with respect to the unit, and the payment schedule; 
           (ii) the installments of special common expense 
        assessments, if any, payable with respect to the unit, and the 
        payment schedule; and 
           (iii) any plan approved by the association for levying 
        certain common expense assessments against fewer than all the 
        units pursuant to section 515B.3-115, subsection (h), and the 
        amount and payment schedule for any such common expenses payable 
        with respect to the unit; 
           (3) a statement of any fees or charges other than 
        assessments payable by unit owners; 
           (4) a statement of any capital extraordinary expenditures 
        approved by the association, and not yet assessed, for the 
        current and two succeeding fiscal years; 
           (5) a statement of the amount of any reserves for 
        maintenance, repair or replacement and of any portions of those 
        reserves designated by the association for any specified 
        projects or uses; 
           (6) the most recent regularly prepared balance sheet and 
        income and expense statement of the association; 
           (7) the current budget of the association; 
           (8) a statement of any unsatisfied judgments against the 
        association and the status of any pending suits in which the 
        association is party; 
           (9) a detailed description of the insurance coverage 
        provided for the benefit of unit owners, including any fixtures, 
        decorating items or construction items within a unit which are 
        not required to be a statement as to which, if any, of the items 
        referred to in section 515B.3-113, subsection (b), are insured 
        by the association; 
           (10) a statement as to whether the board has notified the 
        unit owner (i) that any alterations or improvements to the unit 
        or to the limited common elements assigned thereto violate any 
        provision of the declaration or (ii) that the unit is in 
        violation of any governmental statute, ordinance, code or 
        regulation; and 
           (11) a statement of the remaining term of any leasehold 
        estate affecting the common interest community and the 
        provisions governing any extension or renewal thereof; and 
           (12) any other matters affecting the unit or the unit 
        owner's obligations with respect to the unit which the 
        association deems material. 
           (c) If the association is subject to a master association 
        to which has been delegated the association's powers under 
        section 515B.3-102(a)(2), then the financial information 
        required to be disclosed under subsection (b) may be disclosed 
        on a consolidated basis. 
           (d) The association, within ten days after a request by a 
        unit owner, or the unit owner's authorized representative, shall 
        furnish the certificate required in subsection (a).  The 
        association may charge a reasonable fee for furnishing the 
        certificate and any association documents related thereto.  A 
        unit owner providing a certificate pursuant to subsection (a) is 
        not liable to the purchaser for any erroneous information 
        provided by the association and included in the certificate. 
           (e) A purchaser is not liable for any unpaid common expense 
        assessments, including special assessments, if any, not set 
        forth in the certificate required in subsection (a).  A 
        purchaser is not liable for the amount by which the annual or 
        special assessments exceed the amount of annual or special 
        assessments stated in the certificate for assessments payable in 
        the year in which the certificate was given, except to the 
        extent of any increases subsequently approved in accordance with 
        the declaration or bylaws.  A unit owner is not liable to a 
        purchaser for the failure of the association to provide the 
        certificate, or a delay by the association in providing the 
        certificate in a timely manner. 
           Sec. 29.  Minnesota Statutes 1998, section 515B.4-108, is 
        amended to read: 
           515B.4-108 [PURCHASER'S RIGHT TO CANCEL RESALE.] 
           (a) Unless a purchaser is given the information required to 
        be delivered by section 515B.4-107 more than 15 ten days prior 
        to the execution of the purchase agreement for the unit the 
        purchaser may, prior to the conveyance, cancel the purchase 
        agreement within 15 ten days after receiving the 
        information.  Except as expressly provided in this chapter, the 
        ten-day rescission period cannot be waived. 
           (b) A purchaser who elects to cancel a purchase agreement 
        pursuant to subsection (a), may do so by hand delivering notice 
        thereof or mailing notice by postage prepaid United States mail 
        to the seller or the agent.  Cancellation is without penalty and 
        all payments made by the purchaser shall be refunded promptly. 
           Sec. 30.  Minnesota Statutes 1998, section 515B.4-111, is 
        amended to read: 
           515B.4-111 [CONVERSION PROPERTY.] 
           (a) A declarant of a common interest community containing 
        conversion property, shall give the occupants of residential 
        units in the conversion property notice of the conversion no 
        later than 120 days before they are required to vacate.  A unit 
        owner of a unit occupied for residential use in a common 
        interest community containing conversion property shall not, for 
        a period of one year following the recording of the declaration 
        creating the common interest community, require any occupant of 
        the unit to vacate the unit unless the unit owner gives notice 
        to the occupant in the manner described in this section.  The 
        notice shall be given no later than 120 days before the occupant 
        is required to vacate the unit.  The notice shall be given by 
        sufficient as to all occupants of a unit if it is 
        hand delivering delivered or mailing one notice to each 
        residential unit mailed to the unit to be vacated, addressed to 
        the occupants thereof.  If the holder of the lessee's interest 
        in the unit has given the unit owner of the building an address 
        different than that of the unit, then the notice shall also be 
        given to the holder of the lessee's interest at the designated 
        address.  The notice shall satisfy the following requirements: 
           (1) The notice shall set forth generally the rights 
        conferred by this section. 
           (2) The notice shall have attached to the notice intended 
        for the holder of the lessee's interest a form of purchase 
        agreement setting forth the terms of sale contemplated by 
        subsection (d) and a statement of any significant restrictions 
        on the use and occupancy of the unit to be imposed by the 
        declarant. 
           (3) The notice shall state that the occupants of the 
        residential unit may demand to be given 60 additional days 
        before being required to vacate, if any of them, or any person 
        residing with them, is (i) 62 years of age or older, (ii) a 
        person with a disability as defined in section 268A.01, or (iii) 
        a minor child on the date the notice is given.  This demand must 
        be in writing, contain reasonable proof of qualification, and be 
        given to the declarant within 30 days after the notice of 
        conversion is delivered or mailed. 
           (4) The notice shall be contained in an envelope upon which 
        the following shall be boldly printed: "Notice of Conversion." 
           (b) No occupant of a unit in a conversion 
        property Notwithstanding subsection (a), an occupant may be 
        required to vacate a unit upon less than 120 days' notice, 
        except by reason of nonpayment of rent, utilities or other 
        monetary obligations, violations of law, waste, or conduct that 
        disturbs other tenants' occupants' peaceful enjoyment of the 
        premises.  Nor may The terms of the tenancy may not be altered 
        during that the notice period, except that a tenant the holder 
        of the lessee's interest or other party in possession may vacate 
        and terminate the lease tenancy upon one month's written notice 
        to the declarant.  Nothing in this section prevents 
        the declarant unit owner and any occupant from agreeing to an 
        extension of the tenancy a right of occupancy on a 
        month-to-month basis beyond the 120-day notice period, or to an 
        earlier termination of the tenancy right of occupancy. 
           (c) No repair work or remodeling may be commenced or 
        undertaken in the occupied units or common areas of the building 
        during the notice period, unless reasonable precautions are 
        taken to ensure the safety and security of the occupants. 
           (d) For 60 days after delivery or mailing of the notice 
        described in subsection (a), the holder of the lessee's interest 
        in the unit on the date the notice is mailed or delivered shall 
        have an option to purchase that unit on the terms set forth in 
        the purchase agreement attached to the notice.  The purchase 
        agreement shall contain no terms or provisions which violate any 
        state or federal law relating to discrimination in housing.  If 
        the holder of the lessee's interest fails to purchase the unit 
        during that 60-day period, the declarant unit owner may not 
        offer to dispose of an interest in that unit during the 
        following 180 days at a price or on terms more favorable to the 
        offeree than the price or terms offered to the holder.  This 
        subsection does not apply to any unit in a conversion building 
        if that unit will be restricted exclusively to nonresidential 
        use or if the boundaries of the converted unit do not 
        substantially conform to the boundaries of the residential unit 
        before conversion. 
           (e) If a declarant unit owner, in violation of subsection 
        (b), conveys a unit to a purchaser for value who has no 
        knowledge of the violation, the recording of the deed conveying 
        the unit or, in a cooperative, the conveyance of the right to 
        possession of the unit, extinguishes any right a holder of a 
        lessee's interest who is not in possession of the unit may have 
        under subsection (d) to purchase that unit, but the conveyance 
        does not affect the right of the holder to recover damages from 
        the declarant unit owner for a violation of subsection (d). 
           (f) If a notice of conversion specifies a date by which a 
        unit or proposed unit must be vacated or otherwise complies with 
        the provisions of chapter 566, the notice also constitutes a 
        notice to vacate specified by that statute. 
           (g) Nothing in this section permits termination of a lease 
        by a declarant a unit owner to terminate a lease in violation of 
        its terms. 
           (h) Failure to give notice as required by this section is a 
        defense to an action for possession until a notice complying 
        with this section is given and the applicable notice period 
        terminates. 
           Sec. 31.  Minnesota Statutes 1998, section 515B.4-115, is 
        amended to read: 
           515B.4-115 [STATUTE OF LIMITATIONS FOR WARRANTIES.] 
           (a) A judicial proceeding for breach of an obligation 
        arising under section 515B.4-106(d), shall be commenced within 
        six months after the conveyance of the unit. 
           (b) A judicial proceeding for breach of an obligation 
        arising under section 515B.4-112 or 515B.4-113 shall be 
        commenced within six years after the cause of action accrues, 
        but the parties may agree to reduce the period of limitation to 
        not less than two years.  With respect to a unit that may be 
        occupied for residential use, an agreement to reduce the period 
        of limitation must be evidenced by an instrument separate from 
        the purchase agreement signed by the purchaser. 
           (c) Subject to subsection (d), a cause of action under 
        section 515B.4-112 or 515B.4-113, regardless of the purchasers 
        lack of knowledge of the breach, accrues: 
           (1) as to a unit, at the earlier of the time of conveyance 
        of the unit by the declarant to a bona fide purchaser of the 
        unit other than an affiliate of a declarant, or the time the 
        purchaser enters into possession of the unit; and 
           (2) as to each common element, the latest of (i) the time 
        the common element is completed, (ii) the time the first unit in 
        the condominium common interest community is conveyed to a bona 
        fide purchaser, or if the common element is located on property 
        that is additional real estate at the time the first unit 
        therein is conveyed to a bona fide purchaser, or (iii) the 
        termination of the period of declarant control. 
           (d) If a warranty explicitly extends to future performance 
        or duration of any improvement or component of the common 
        interest community, the cause of action accrues at the time the 
        breach is discovered or at the end of the period for which the 
        warranty explicitly extends, whichever is earlier. 
                                   ARTICLE 3 
           Section 1.  Minnesota Statutes 1998, section 47.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] For the purposes of this section 
        the terms defined in this subdivision have the meanings given 
        them: 
           (1) "Actual closing costs" mean reasonable charges for or 
        sums paid for the following, whether or not retained by the 
        mortgagee or lender: 
           (a) Any insurance premiums including but not limited to 
        premiums for title insurance, fire and extended coverage 
        insurance, flood insurance, and private mortgage insurance, but 
        excluding any charges or sums retained by the mortgagee or 
        lender as self-insured retention. 
           (b) Abstracting, title examination and search, and 
        examination of public records. 
           (c) The preparation and recording of any or all documents 
        required by law or custom for closing a conventional or 
        cooperative apartment loan. 
           (d) Appraisal and survey of real property securing a 
        conventional loan or real property owned by a cooperative 
        apartment corporation of which a share or shares of stock or a 
        membership certificate or certificates are to secure a 
        cooperative apartment loan. 
           (e) A single service charge, which includes any 
        consideration, not otherwise specified herein as an "actual 
        closing cost" paid by the borrower and received and retained by 
        the lender for or related to the acquisition, making, 
        refinancing or modification of a conventional or cooperative 
        apartment loan, and also includes any consideration received by 
        the lender for making a borrower's interest rate commitment or 
        for making a borrower's loan commitment, whether or not an 
        actual loan follows the commitment.  The term service charge 
        does not include forward commitment fees.  The service charge 
        shall not exceed one percent of the original bona fide principal 
        amount of the conventional or cooperative apartment loan, except 
        that in the case of a construction loan, the service charge 
        shall not exceed two percent of the original bona fide principal 
        amount of the loan.  That portion of the service charge imposed 
        because the loan is a construction loan shall be itemized and a 
        copy of the itemization furnished the borrower.  A lender shall 
        not collect from a borrower the additional one percent service 
        charge permitted for a construction loan if it does not perform 
        the service for which the charge is imposed or if third parties 
        perform and charge the borrower for the service for which the 
        lender has imposed the charge. 
           (f) Charges and fees necessary for or related to the 
        transfer of real or personal property securing a conventional or 
        cooperative apartment loan or the closing of a conventional or 
        cooperative apartment loan paid by the borrower and received by 
        any party other than the lender. 
           (2) "Contract for deed" means an executory contract for the 
        conveyance of real estate, the original principal amount of 
        which is less than $100,000.  A commitment for a contract for 
        deed shall include an executed purchase agreement or earnest 
        money contract wherein the seller agrees to finance any part or 
        all of the purchase price by a contract for deed. 
           (3) "Conventional loan" means a loan or advance of credit, 
        other than a loan or advance of credit made by a credit union or 
        made pursuant to section 334.011, to a noncorporate borrower in 
        an original principal amount of less than $100,000, secured by a 
        mortgage upon real property containing one or more residential 
        units or upon which at the time the loan is made it is intended 
        that one or more residential units are to be constructed, and 
        which is not insured or guaranteed by the secretary of housing 
        and urban development, by the administrator of veterans affairs, 
        or by the administrator of the farmers home administration, and 
        which is not made pursuant to the authority granted in 
        subdivision 1, clause (3) or (4).  The term mortgage does not 
        include contracts for deed or installment land contracts. 
           (4) "Cooperative apartment loan" means a loan or advance of 
        credit, other than a loan or advance of credit made by a credit 
        union or made pursuant to section 334.011, to a noncorporate 
        borrower in an original principal amount of less than $100,000, 
        secured by a security interest on a share or shares of stock or 
        a membership certificate or certificates issued to a stockholder 
        or member by a cooperative apartment corporation, which may be 
        accompanied by an assignment by way of security of the 
        borrower's interest in the proprietary lease or occupancy 
        agreement in property issued by the cooperative apartment 
        corporation and which is not insured or guaranteed by the 
        secretary of housing and urban development, by the administrator 
        of veterans affairs, or by the administrator of the farmers home 
        administration.  
           (5) "Cooperative apartment corporation" means a corporation 
        or cooperative organized under chapter 308A or 317A, the 
        shareholders or members of which are entitled, solely by reason 
        of their ownership of stock or membership certificates in the 
        corporation or association, to occupy one or more residential 
        units in a building owned or leased by the corporation or 
        association.  
           (6) "Forward commitment fee" means a fee or other 
        consideration paid to a lender for the purpose of securing a 
        binding forward commitment by or through the lender to make 
        conventional loans to two or more credit worthy purchasers, 
        including future purchasers, of residential units, or a fee or 
        other consideration paid to a lender for the purpose of securing 
        a binding forward commitment by or through the lender to make 
        conventional loans to two or more credit worthy purchasers, 
        including future purchasers, of apartments as defined in section 
        515.02 units to be created out of existing structures pursuant 
        to the Minnesota Condominium Act chapter 515B, or a fee or other 
        consideration paid to a lender for the purpose of securing a 
        binding forward commitment by or through the lender to make 
        cooperative apartment loans to two or more credit worthy 
        purchasers, including future purchasers, of a share or shares of 
        stock or a membership certificate or certificates in a 
        cooperative apartment corporation; provided, that the forward 
        commitment rate of interest does not exceed the maximum lawful 
        rate of interest effective as of the date the forward commitment 
        is issued by the lender. 
           (7) "Borrower's interest rate commitment" means a binding 
        commitment made by a lender to a borrower wherein the lender 
        agrees that, if a conventional or cooperative apartment loan is 
        made following issuance of and pursuant to the commitment, the 
        conventional or cooperative apartment loan shall be made at a 
        rate of interest not in excess of the rate of interest agreed to 
        in the commitment, provided that the rate of interest agreed to 
        in the commitment is not in excess of the maximum lawful rate of 
        interest effective as of the date the commitment is issued by 
        the lender to the borrower. 
           (8) "Borrower's loan commitment" means a binding commitment 
        made by a lender to a borrower wherein the lender agrees to make 
        a conventional or cooperative apartment loan pursuant to the 
        provisions, including the interest rate, of the commitment, 
        provided that the commitment rate of interest does not exceed 
        the maximum lawful rate of interest effective as of the date the 
        commitment is issued and the commitment when issued and agreed 
        to shall constitute a legally binding obligation on the part of 
        the mortgagee or lender to make a conventional or cooperative 
        apartment loan within a specified time period in the future at a 
        rate of interest not exceeding the maximum lawful rate of 
        interest effective as of the date the commitment is issued by 
        the lender to the borrower; provided that a lender who issues a 
        borrower's loan commitment pursuant to the provisions of a 
        forward commitment is authorized to issue the borrower's loan 
        commitment at a rate of interest not to exceed the maximum 
        lawful rate of interest effective as of the date the forward 
        commitment is issued by the lender. 
           (9) "Finance charge" means the total cost of a conventional 
        or cooperative apartment loan including extensions or grant of 
        credit regardless of the characterization of the same and 
        includes interest, finders fees, and other charges levied by a 
        lender directly or indirectly against the person obtaining the 
        conventional or cooperative apartment loan or against a seller 
        of real property securing a conventional loan or a seller of a 
        share or shares of stock or a membership certificate or 
        certificates in a cooperative apartment corporation securing a 
        cooperative apartment loan, or any other party to the 
        transaction except any actual closing costs and any forward 
        commitment fee.  The finance charges plus the actual closing 
        costs and any forward commitment fee, charged by a lender shall 
        include all charges made by a lender other than the principal of 
        the conventional or cooperative apartment loan.  The finance 
        charge, with respect to wraparound mortgages, shall be computed 
        based upon the face amount of the wraparound mortgage note, 
        which face amount shall consist of the aggregate of those funds 
        actually advanced by the wraparound lender and the total 
        outstanding principal balances of the prior note or notes which 
        have been made a part of the wraparound mortgage note.  
           (10) "Lender" means any person making a conventional or 
        cooperative apartment loan, or any person arranging financing 
        for a conventional or cooperative apartment loan.  The term also 
        includes the holder or assignee at any time of a conventional or 
        cooperative apartment loan. 
           (11) "Loan yield" means the annual rate of return obtained 
        by a lender over the term of a conventional or cooperative 
        apartment loan and shall be computed as the annual percentage 
        rate as computed in accordance with sections 226.5 (b), (c), and 
        (d) of Regulation Z, Code of Federal Regulations, title 12, 
        section 226, but using the definition of finance charge provided 
        for in this subdivision.  For purposes of this section, with 
        respect to wraparound mortgages, the rate of interest or loan 
        yield shall be based upon the principal balance set forth in the 
        wraparound note and mortgage and shall not include any interest 
        differential or yield differential between the stated interest 
        rate on the wraparound mortgage and the stated interest rate on 
        the one or more prior mortgages included in the stated loan 
        amount on a wraparound note and mortgage.  
           (12) "Person" means an individual, corporation, business 
        trust, partnership or association or any other legal entity. 
           (13) "Residential unit" means any structure used 
        principally for residential purposes or any portion thereof, and 
        includes a unit in a townhouse or planned unit development, a 
        condominium apartment in a common interest community, a nonowner 
        occupied residence, and any other type of residence regardless 
        of whether the unit is used as a principal residence, secondary 
        residence, vacation residence, or residence of some other 
        denomination. 
           (14) "Vendor" means any person or persons who agree to sell 
        real estate and finance any part or all of the purchase price by 
        a contract for deed.  The term also includes the holder or 
        assignee at any time of the vendor's interest in a contract for 
        deed. 
           Sec. 2.  Minnesota Statutes 1998, section 51A.02, 
        subdivision 29, is amended to read: 
           Subd. 29.  [HOME PROPERTY.] "Home property" means real 
        estate on which there is located, or will be located pursuant to 
        a real estate loan, either a structure designed for residential 
        use by one family or a single condominium unit in a residential 
        common interest community, or unit in a residential cooperative, 
        including all elements pertinent thereto, designed for 
        residential use by one family in a multiple dwelling unit 
        structure or complex, and includes fixtures, furnishings and 
        equipment. 
           Sec. 3.  Minnesota Statutes 1998, section 60C.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] A covered claim is any unpaid 
        claim, including one for unearned premium, which: 
           (a)(1) Arises out of and is within the coverage of an 
        insurance policy issued by a member insurer if the insurer 
        becomes an insolvent insurer after April 30, 1979; or 
           (2) Would be within the coverage of an extended reporting 
        endorsement to a claims-made insurance policy if insolvency had 
        not prevented the member insurer from fulfilling its obligation 
        to issue the endorsement, if: 
           (i) the claims-made policy contained a provision affording 
        the insured the right to purchase a reporting endorsement; 
           (ii) coverage will be no greater than if a reporting 
        endorsement had been issued; 
           (iii) the insured has not purchased other insurance which 
        applies to the claim; and 
           (iv) the insured's deductible under the policy is increased 
        by an amount equal to the premium for the reporting endorsement, 
        as provided in the insured's claims-made policy, or if not so 
        provided, then as established by a rate service organization. 
           (b) Arises out of a class of business which is not excepted 
        from the scope of this chapter by section 60C.02; and 
           (c) Is made by: 
           (i) A policyholder, or an insured beneficiary under a 
        policy, who, at the time of the insured event, was a resident of 
        this state; or 
           (ii) A person designated in the policy as having an 
        insurable interest in or related to property situated in this 
        state at the time of the insured event; or 
           (iii) An obligee or creditor under any surety bond, who, at 
        the time of default by the principal debtor or obligor, was a 
        resident of this state; or 
           (iv) A third party claimant under a liability policy or 
        surety bond, if:  (a) the insured or the third party claimant 
        was a resident of this state at the time of the insured event; 
        (b) the claim is for bodily or personal injuries suffered in 
        this state by a person who when injured was a resident of this 
        state; or (c) the claim is for damages to real property situated 
        in this state at the time of damage; or 
           (v) A direct or indirect assignee of a person who except 
        for the assignment might have claimed under item (i), (ii), or 
        (iii). 
           For purposes of paragraph (c), item (ii), unit owners of 
        condominiums, townhouses, or cooperatives units in a common 
        interest community are considered as having an insurable 
        interest.  
           A covered claim also includes any unpaid claim which arises 
        or exists within 30 days after the time of entry of a final 
        order of liquidation with a finding of insolvency by a court of 
        competent jurisdiction unless prior thereto the insured replaces 
        the policy or causes its cancellation or the policy expires on 
        its expiration date.  A covered claim does not include claims 
        filed with the guaranty fund after the final date set by the 
        court for the filing of claims except for workers' compensation 
        claims that have met the time limitations and other requirements 
        of chapter 176 and excused late filings permitted under section 
        60B.37. 
           Sec. 4.  Minnesota Statutes 1998, section 83.20, 
        subdivision 11, is amended to read: 
           Subd. 11.  "Subdivision" or "subdivided land" means any 
        real estate, wherever located, improved or unimproved, which is 
        divided or proposed to be divided for the purpose of sale or 
        lease, including sales or leases of any timeshare interest, 
        housing cooperative, condominium unit in a common interest 
        community, or similar interest in real estate.  
           Sec. 5.  Minnesota Statutes 1998, section 83.20, 
        subdivision 14, is amended to read: 
           Subd. 14.  "Improved lots" means lots which have or will 
        have within a two-year period from the date of purchase, a 
        permanent residential structure thereon, and are not devoted to 
        or used as a time share interest, cooperative apartment 
        corporation, condominium unit in a common interest community, or 
        similar interest in real estate.  
           Sec. 6.  Minnesota Statutes 1998, section 103I.235, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a) Before 
        signing an agreement to sell or transfer real property, the 
        seller must disclose in writing to the buyer information about 
        the status and location of all known wells on the property, by 
        delivering to the buyer either a statement by the seller that 
        the seller does not know of any wells on the property, or a 
        disclosure statement indicating the legal description and 
        county, and a map drawn from available information showing the 
        location of each well to the extent practicable.  In the 
        disclosure statement, the seller must indicate, for each well, 
        whether the well is in use, not in use, or sealed.  
           (b) At the time of closing of the sale, the disclosure 
        statement information, name and mailing address of the buyer, 
        and the quartile, section, township, and range in which each 
        well is located must be provided on a well disclosure 
        certificate signed by the seller or a person authorized to act 
        on behalf of the seller. 
           (c) A well disclosure certificate need not be provided if 
        the seller does not know of any wells on the property and the 
        deed or other instrument of conveyance contains the statement:  
        "The Seller certifies that the Seller does not know of any wells 
        on the described real property."  
           (d) If a deed is given pursuant to a contract for deed, the 
        well disclosure certificate required by this subdivision shall 
        be signed by the buyer or a person authorized to act on behalf 
        of the buyer.  If the buyer knows of no wells on the property, a 
        well disclosure certificate is not required if the following 
        statement appears on the deed followed by the signature of the 
        grantee or, if there is more than one grantee, the signature of 
        at least one of the grantees:  "The Grantee certifies that the 
        Grantee does not know of any wells on the described real 
        property."  The statement and signature of the grantee may be on 
        the front or back of the deed or on an attached sheet and an 
        acknowledgment of the statement by the grantee is not required 
        for the deed to be recordable. 
           (e) This subdivision does not apply to the sale, exchange, 
        or transfer of real property:  
           (1) that consists solely of a sale or transfer of severed 
        mineral interests; or 
           (2) that consists of an individual condominium unit as 
        described in chapters 515 and 515A 515B. 
           (f) For an area owned in common under chapter 515 or 515A 
        515B the association or other responsible person must report to 
        the commissioner by July 1, 1992, the location and status of all 
        wells in the common area.  The association or other responsible 
        person must notify the commissioner within 30 days of any change 
        in the reported status of wells. 
           (g) For real property sold by the state under section 
        92.67, the lessee at the time of the sale is responsible for 
        compliance with this subdivision. 
           (h) If the seller fails to provide a required well 
        disclosure certificate, the buyer, or a person authorized to act 
        on behalf of the buyer, may sign a well disclosure certificate 
        based on the information provided on the disclosure statement 
        required by this section or based on other available information.
           (i) A county recorder or registrar of titles may not record 
        a deed or other instrument of conveyance dated after October 31, 
        1990, for which a certificate of value is required under section 
        272.115, or any deed or other instrument of conveyance dated 
        after October 31, 1990, from a governmental body exempt from the 
        payment of state deed tax, unless the deed or other instrument 
        of conveyance contains the statement made in accordance with 
        paragraph (c) or (d) or is accompanied by the well disclosure 
        certificate containing all the information required by paragraph 
        (b) or (d).  The county recorder or registrar of titles must not 
        accept a certificate unless it contains all the required 
        information.  The county recorder or registrar of titles shall 
        note on each deed or other instrument of conveyance accompanied 
        by a well disclosure certificate that the well disclosure 
        certificate was received.  The notation must include the 
        statement "No wells on property" if the disclosure certificate 
        states there are no wells on the property.  The well disclosure 
        certificate shall not be filed or recorded in the records 
        maintained by the county recorder or registrar of titles.  After 
        noting "No wells on property" on the deed or other instrument of 
        conveyance, the county recorder or registrar of titles shall 
        destroy or return to the buyer the well disclosure certificate.  
        The county recorder or registrar of titles shall collect from 
        the buyer or the person seeking to record a deed or other 
        instrument of conveyance, a fee of $20 for receipt of a 
        completed well disclosure certificate.  By the tenth day of each 
        month, the county recorder or registrar of titles shall transmit 
        the well disclosure certificates to the commissioner of health.  
        By the tenth day after the end of each calendar quarter, the 
        county recorder or registrar of titles shall transmit to the 
        commissioner of health $17.50 of the fee for each well 
        disclosure certificate received during the quarter.  The 
        commissioner shall maintain the well disclosure certificate for 
        at least six years.  The commissioner may store the certificate 
        as an electronic image.  A copy of that image shall be as valid 
        as the original. 
           (j) No new well disclosure certificate is required under 
        this subdivision if the buyer or seller, or a person authorized 
        to act on behalf of the buyer or seller, certifies on the deed 
        or other instrument of conveyance that the status and number of 
        wells on the property have not changed since the last previously 
        filed well disclosure certificate.  The following statement, if 
        followed by the signature of the person making the statement, is 
        sufficient to comply with the certification requirement of this 
        paragraph:  "I am familiar with the property described in this 
        instrument and I certify that the status and number of wells on 
        the described real property have not changed since the last 
        previously filed well disclosure certificate."  The 
        certification and signature may be on the front or back of the 
        deed or on an attached sheet and an acknowledgment of the 
        statement is not required for the deed or other instrument of 
        conveyance to be recordable. 
           (k) The commissioner in consultation with county recorders 
        shall prescribe the form for a well disclosure certificate and 
        provide well disclosure certificate forms to county recorders 
        and registrars of titles and other interested persons. 
           (l) Failure to comply with a requirement of this 
        subdivision does not impair: 
           (1) the validity of a deed or other instrument of 
        conveyance as between the parties to the deed or instrument or 
        as to any other person who otherwise would be bound by the deed 
        or instrument; or 
           (2) the record, as notice, of any deed or other instrument 
        of conveyance accepted for filing or recording contrary to the 
        provisions of this subdivision. 
           Sec. 7.  Minnesota Statutes 1998, section 238.22, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MULTIPLE DWELLING COMPLEX.] "Multiple dwelling 
        complex" means a site, lot, field, or tract of land or water, 
        other than a condominium, cooperative common interest community, 
        or mobile home park, whether occupied or under construction, 
        containing more than four dwelling units. 
           Sec. 8.  Minnesota Statutes 1998, section 273.124, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TOWNHOUSES PLANNED COMMUNITIES; COMMON AREAS 
        ELEMENTS; CONDOMINIUMS; COOPERATIVES.] (a) The total value 
        of townhouse property planned community common elements, as 
        defined in chapter 515B, including the value added as provided 
        in this paragraph, must have the benefit of homestead treatment 
        or other special classification if the townhouse unit in the 
        planned community otherwise qualifies.  The value of townhouse 
        property a planned community unit, as defined in chapter 515B, 
        must be increased by the value added by the right to use any 
        common areas elements in connection with the townhouse 
        development planned community.  The common areas elements of the 
        development must not be separately taxed.  
           (b) Condominium property qualifying as a homestead under 
        section 515A.1-105 and property owned by a cooperative 
        association that qualifies as a homestead must have the benefit 
        of homestead treatment or other special classification if the 
        condominium or cooperative association property otherwise 
        qualifies.  
           (c) If the condominium, townhouse, or cooperative 
        association property a unit in a common interest community is 
        owned by the occupant and used for the purposes of a homestead 
        but is located upon land which is leased, that leased land must 
        be valued and assessed as if it were homestead property within 
        class 1 if all of the following criteria are met: 
           (1) the occupant is using the property unit as a permanent 
        residence; 
           (2) the occupant or the cooperative association is paying 
        the ad valorem property taxes and any special assessments levied 
        against the land and structure; 
           (3) the occupant or the cooperative association has signed 
        a land lease; and 
           (4) the term of the land lease is at least 50 years, 
        notwithstanding the fact that the amount of the rental payment 
        may be renegotiated at shorter intervals.  
           Sec. 9.  Minnesota Statutes 1998, section 297H.01, 
        subdivision 8, is amended to read: 
           Subd. 8.  [RESIDENTIAL GENERATOR.] "Residential generator" 
        means any of the following: 
           (1) a detached single family residence that generates mixed 
        municipal solid waste or non-mixed-municipal solid waste; 
           (2) a person residing in a building or site containing 
        multiple residences that generates mixed municipal solid waste, 
        including apartment buildings, condominiums, common interest 
        communities, or manufactured home parks, or townhomes, where 
        each residence is separately billed by the waste service 
        provider; 
           (3) an owner of a building or site containing multiple 
        residences or an association representing residences that 
        generate mixed municipal solid waste or non-mixed-municipal 
        solid waste, including apartment buildings, condominiums, 
        manufactured home parks, or townhomes where no residence is 
        separately billed for such service by the waste management 
        service provider and the owner or association is billed directly 
        for the waste management services.  A residential generator does 
        not include a self-hauler. 
           Sec. 10.  Minnesota Statutes 1998, section 327C.095, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PARK CONVERSIONS.] If the planned cessation of 
        operation is for the purpose of converting the part of the park 
        occupied by the resident to a condominium common interest 
        community pursuant to chapter 515A 515B, the provisions of 
        section 515A.4-110 515B.4-111, except paragraph subsection (a), 
        shall apply.  The nine-month notice required by this section 
        shall state that the cessation is for the purpose of conversion 
        and shall set forth the rights conferred by this subdivision and 
        section 515A.4-110 515B.4-111, paragraph subsection (b).  Not 
        less than 120 days before the end of the nine months, the park 
        owner shall serve upon the resident a form of purchase agreement 
        setting forth the terms of sale contemplated by section 
        515A.4-110 515B.4-111, paragraph (b) subsection (d).  Service of 
        that form shall operate as the notice described by section 
        515A.4-110 515B.4-111, paragraph subsection (a). 
           Sec. 11.  Minnesota Statutes 1998, section 357.18, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COUNTY RECORDER FEES.] The fees to be 
        charged by the county recorder shall be as follows: 
           (1) for indexing and recording any deed or other instrument 
        $1 for each page of an instrument, with a minimum fee of $15; 
           (2) for documents containing multiple assignments, partial 
        releases or satisfactions $10 for each document number or book 
        and page cited; 
           (3) for certified copies of any records or papers, $1 for 
        each page of an instrument with a minimum fee of $5; 
           (4) for an abstract of title, the fees shall be determined 
        by resolution of the county board duly adopted upon the 
        recommendation of the county recorder, and the fees shall not 
        exceed $5 for every entry, $50 for abstract certificate, $1 per 
        page for each exhibit included within an abstract as a part of 
        an abstract entry, and $2 per name for each required name search 
        certification; 
           (5) for a copy of an official plat filed pursuant to 
        section 505.08, the fee shall be $9.50 and an additional 50 
        cents shall be charged for the certification of each plat; 
           (6) for filing a condominium an amended floor plan in 
        accordance with section 515.13, or a condominium plat in 
        accordance with section 515A.2-110 chapter 515, an amended 
        condominium plat in accordance with chapter 515A, or a common 
        interest community plat or amendment complying with section 
        515B.2-110, subsection (c), the fee shall be 50 cents per 
        apartment or unit with a minimum fee of $30; 
           (7) for a copy of a condominium floor plan filed pursuant 
        to section 515.13, or chapter 515, a copy of a condominium plat 
        filed in accordance with section 515A.2-110 chapter 515A, or a 
        copy of a common interest community plat complying with section 
        515B.2-110, subsection (c), the fee shall be $1 for each page of 
        the floor plan or, condominium plat or common interest community 
        plat with a minimum fee of $10. 
           Sec. 12.  Minnesota Statutes 1998, section 389.09, is 
        amended to read: 
           389.09 [APPROVAL OF PLATS AND SURVEYS AND CONDOMINIUM PLATS 
        IN CERTAIN COUNTIES.] 
           Subdivision 1.  [PLATS AND SURVEYS IN CERTAIN COUNTIES.] In 
        any county in which there is a county surveyor who maintains an 
        office on a full-time basis in a building maintained by the 
        county for county purposes, the county board may, by ordinance 
        adopted in accordance with section 375.51, require that each 
        subdivision plat or registered land survey plat or condominium 
        common interest community plat must be approved by the county 
        surveyor before recording.  The county board shall establish a 
        schedule of fees charged to proprietors of plats for this 
        service. 
           Subd. 2.  [CONDOMINIUM COMMON INTEREST COMMUNITY PLATS.] A 
        county board may, by ordinance adopted in accordance with 
        section 375.51, require that each condominium common interest 
        community plat submitted for recordation after July 31, 1985, be 
        approved by the county surveyor or other licensed surveyor hired 
        for this purpose by the county, for compliance with 
        section 515A.2-110 515B.2-110, before recording.  The process of 
        approving the condominium common interest community plat must be 
        conducted in an expeditious manner so as not to unduly delay the 
        recording of the condominium common interest community plat.  
        The proprietor of the condominium common interest community plat 
        may be charged a reasonable fee for the service in accordance 
        with a schedule established by resolution passed by the 
        governing body of the county. 
           Sec. 13.  Minnesota Statutes 1998, section 428A.11, 
        subdivision 4, is amended to read: 
           Subd. 4.  [HOUSING IMPROVEMENTS.] "Housing improvements" 
        has the meaning given in the city's enabling ordinance.  Housing 
        improvements may include improvements to common elements of a 
        condominium or other common interest community. 
           Sec. 14.  Minnesota Statutes 1998, section 428A.11, 
        subdivision 6, is amended to read: 
           Subd. 6.  [HOUSING UNIT.] "Housing unit" means real 
        property and improvements thereon consisting of a one-dwelling 
        unit, or an apartment or unit as described in chapter 515 or, 
        515A, or 515B, respectively, that is occupied by a person or 
        family for use as a residence. 
           Sec. 15.  Minnesota Statutes 1998, section 462C.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SINGLE FAMILY HOUSING.] "Single family housing" 
        means real property and improvements thereon consisting of a 
        one, two, three or four unit dwelling, one unit of which is 
        occupied as a principal residence by the owner of the units, or 
        a unit or an apartment as described in chapter 515 or, 515A, or 
        515B, or any amendatory or supplemental law, which is owned or 
        to be owned and occupied by one person or family as a principal 
        residence, or a unit in a cooperatively owned group of dwelling 
        units which is occupied as a principal residence.  Single family 
        housing may include new construction, or the acquisition and 
        rehabilitation of an existing building and site, or the 
        rehabilitation of and discharge of any interest or lien in an 
        existing building and site. 
           Sec. 16.  Minnesota Statutes 1998, section 462C.02, 
        subdivision 5, is amended to read: 
           Subd. 5.  [MULTIFAMILY HOUSING DEVELOPMENT, DEVELOPMENT.] 
        "Multifamily housing development" or "development" means an 
        apartment facility, including an apartment or unit described in 
        chapter 515 or, 515A, or 515B, or a cooperative, or a group of 
        townhouses, which include four or more dwelling units, each to 
        be rented or sold to or occupied by a person or family for use 
        as a residence, or a building or buildings which include one or 
        more dwelling units, each to be rented by a person or family for 
        use as a residence.  A development may include new construction 
        or the acquisition and rehabilitation of an existing building 
        and site or the rehabilitation of and discharge of any interest 
        or lien in an existing building and site. 
           Sec. 17.  Minnesota Statutes 1998, section 462C.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [USE OF LOANS; CONDITIONS.] A city may also 
        include in the housing plan, a program or programs to 
        administer, and make or purchase a loan or loans to finance one 
        or more multifamily housing developments within its boundaries, 
        of the kind described in subdivision 2, 3, 4 or 7, and upon the 
        conditions set forth in this section.  A loan may be made or 
        purchased for 
           (a) the acquisition and preparation of a site and the 
        construction of a new development, 
           (b) the rehabilitation of an existing building and site and 
        the discharge of any lien or other interest in the building and 
        site, 
           (c) for the acquisition of an existing building and site 
        and the rehabilitation thereof, 
           (d) for the acquisition of an existing building and site 
        for purposes of conversion to limited equity cooperative 
        ownership by low or moderate income families, 
           (e) for the acquisition, or acquisition and improvement, of 
        an existing building and site by a nonprofit corporation which 
        will operate the building as a multifamily housing development 
        for rental primarily to elderly or handicapped persons, or 
           (f) the taking out of accumulated equity in connection with 
        a program of federal insurance for the preservation of 
        low-income housing. 
           With respect to loans made or purchased pursuant to clause 
        (b) or (c), the cost of rehabilitation of an existing building 
        must be estimated to equal at least $1,000 per dwelling unit or 
        20 percent of the appraised value of the original building and 
        site whichever is less, except that with respect to 
        rehabilitation which consists primarily of improvement of the 
        property with facilities or improvements to conserve energy or 
        convert or retrofit for use of alternative energy sources, 
        rehabilitation loans may be made without regard to cost; and at 
        least a substantial portion of such rehabilitation cost must be 
        estimated to be incurred for compliance with building codes or 
        conservation of energy. 
           Each development upon completion shall comply with all 
        applicable code requirements.  A loan or loans may be made or 
        purchased for either the construction or the long-term financing 
        of a development, or both, including the financing of the 
        acquisition of dwelling units and interests in common facilities 
        provided therein, by persons to whom such units and facilities 
        may be sold as contemplated in chapter 515 or, 515A, or 515B, or 
        any supplemental or amendatory law thereof or as contemplated 
        for a development consisting of cooperative housing.  
           Substantially all of the proceeds of each loan shall be 
        used to pay the cost of a multifamily housing development, 
        including property functionally related and subordinate to it; 
        but nothing herein prevents the construction or acquisition of 
        the development over, under, or adjacent to, and in conjunction 
        with facilities to be used for purposes other than housing. 
           Sec. 18.  Minnesota Statutes 1998, section 500.20, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [RESTRICTION OF DURATION OF CONDITION.] Except 
        for any right to reenter or to repossess as provided in 
        subdivision 3, all private covenants, conditions, or 
        restrictions created by which the title or use of real property 
        is affected, cease to be valid and operative 30 years after the 
        date of the deed, or other instrument, or the date of the 
        probate of the will, creating them, and may be disregarded.  
           This subdivision does not apply to covenants, conditions, 
        or restrictions:  
           (1) that were created before August 1, 1988, by deed or 
        other instrument dated on or after August 1, 1982, or by will 
        the date of death of the testator of which was on or after 
        August 1, 1982; 
           (2) that were created before August 1, 1959, under which a 
        person who owns or has an interest in real property against 
        which the covenants, conditions, or restrictions have been filed 
        claims a benefit of the covenant, condition, or restriction if 
        the person records in the office of the county recorder or files 
        in the office of the registrar of titles in the county in which 
        the real estate affected is located, on or before March 30, 
        1989, a notice sworn to by the claimant or the claimant's agent 
        or attorney:  setting forth the name of the claimant; describing 
        the real estate affected; describing the deed, instrument, or 
        will creating the covenant, condition, or restriction; and 
        stating that the covenant, condition, or restriction is not 
        nominal and may not be disregarded under subdivision 1; 
           (3) that are created by the declaration, bylaws, floor 
        plans, or condominium plat of a condominium created before 
        August 1, 1980, under sections 515.01 to 515.29 chapter 515, or 
        created on or after August 1, 1980, under sections 515A.1-101 to 
        515A.4-117 chapter 515A or 515B, or by any amendments of the 
        declaration, bylaws, floor plans, or condominium plat; 
           (4) that are created by the articles of incorporation, 
        bylaws, or proprietary leases of a cooperative association 
        formed under chapter 308A; 
           (5) that are created by a declaration or other instrument 
        that authorizes and empowers a corporation of which the 
        qualification for being a stockholder or member is ownership of 
        certain parcels of real estate, to hold title to common real 
        estate for the benefit of the parcels; 
           (6) that are created by a deed, declaration, reservation, 
        or other instrument by which one or more portions of a building, 
        set of connecting or adjacent buildings, or complex or project 
        of related buildings and structures share support, structural 
        components, ingress and egress, or utility access with another 
        portion or portions; 
           (7) that were created after July 31, 1959, and before 
        August 1, 1982, under which a person who owns or has an interest 
        in real estate against which covenants, conditions, or 
        restrictions have been filed claims a benefit of the covenants, 
        conditions, or restrictions if the person records in the office 
        of the county recorder or files in the office of the registrar 
        of titles in the county in which the real estate affected is 
        located during the period commencing on the 28th anniversary of 
        the date of the deed or instrument, or the date of the probate 
        of the will, creating them and ending on the 30th anniversary, a 
        notice as described in clause (2); or 
           (8) that are created by a declaration or bylaws of a common 
        interest community created under or governed by chapter 515B, or 
        by any amendments thereto. 
           A notice filed in accordance with clause (2) or (7) delays 
        application of this subdivision to the covenants, conditions, or 
        restrictions for a period ending on the later of seven years 
        after the date of filing of the notice, or until final judgment 
        is entered in an action to determine the validity of the 
        covenants, conditions, or restrictions, provided in the case of 
        an action the summons and complaint must be served and a notice 
        of lis pendens must be recorded in the office of the county 
        recorder or filed in the office of the registrar of titles in 
        each county in which the real estate affected is located within 
        seven years after the date of recording or filing of the notice 
        under clause (2) or (7). 
           County recorders and registrars of titles shall accept for 
        recording or filing a notice conforming with this subdivision 
        and charge a fee corresponding with the fee charged for filing a 
        notice of lis pendens of similar length.  The notice may be 
        discharged in the same manner as a notice of lis pendens and 
        when discharged, together with the information included with it, 
        ceases to constitute either actual or constructive notice. 
           Sec. 19.  Minnesota Statutes 1998, section 505.08, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PREMATURE REFERENCE TO PLAT; FORFEITURE.] Any 
        person who shall dispose of, lease, or offer to sell any land 
        included in a plat by reference to the plat before the same is 
        recorded, shall forfeit to the county $100 for each lot, or part 
        of a lot, so disposed of, leased, or offered; and any official, 
        land surveyor, or person whose duty it is to comply with any of 
        the provisions of this chapter, shall forfeit not less than $100 
        for each month during which compliance is delayed.  All 
        forfeitures under this chapter shall be recovered in an action 
        brought in the name of the county. Notwithstanding any 
        provisions of this subdivision to the contrary, this subdivision 
        shall not apply to an offer to sell or lease a unit in a 
        proposed common interest community as defined in chapter 515B. 
           Sec. 20.  Minnesota Statutes 1998, section 508.82, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
        to the registrar shall be as follows: 
           (1) of the fees provided herein, five percent of the fees 
        collected under clauses (3), (4), (10), (12), (13), (14), (16), 
        (17), and (18), for filing or memorializing shall be paid to the 
        state treasurer and credited to the general fund; plus a $4.50 
        surcharge shall be charged and collected in addition to the 
        total fees charged for each transaction under clauses (2) to 
        (5), (10), (12), (14), and (18), with 50 cents of this surcharge 
        to be retained by the county to cover its administrative costs 
        and $4 to be paid to the state treasury and credited to the 
        general fund; 
           (2) for registering each original certificate of title, and 
        issuing a duplicate of it, $30; 
           (3) for registering each instrument transferring the fee 
        simple title for which a new certificate of title is issued and 
        for the issuance and registration of the new certificate of 
        title, $30; 
           (4) for the entry of each memorial on a certificate and 
        endorsements upon duplicate certificates, $15; 
           (5) for issuing each residue certificate, $20; 
           (6) for exchange certificates, $10 for each certificate 
        canceled and $10 for each new certificate issued; 
           (7) for each certificate showing condition of the register, 
        $10; 
           (8) for any certified copy of any instrument or writing on 
        file in the registrar's office, the same fees allowed by law to 
        county recorders for like services; 
           (9) for a noncertified copy of any instrument or writing on 
        file in the office of the registrar of titles, or any specified 
        page or part of it, an amount as determined by the county board 
        for each page or fraction of a page specified.  If computer or 
        microfilm printers are used to reproduce the instrument or 
        writing, a like amount per image; 
           (10) for filing two copies of any plat in the office of the 
        registrar, $30; 
           (11) for any other service under this chapter, such fee as 
        the court shall determine; 
           (12) for issuing a duplicate certificate of title pursuant 
        to the directive of the examiner of titles in counties in which 
        the compensation of the examiner is paid in the same manner as 
        the compensation of other county employees, $50, plus $10 to 
        memorialize; 
           (13) for issuing a duplicate certificate of title pursuant 
        to the directive of the examiner of titles in counties in which 
        the compensation of the examiner is not paid by the county or 
        pursuant to an order of the court, $10; 
           (14) for filing a condominium plat or an amendment to it a 
        declaration in accordance with chapter 515, $10 for each 
        certificate upon which the document is registered and $30 for an 
        amended floor plan filed in accordance with chapter 515; 
           (15) for filing an amendment to a condominium declaration 
        or plat in accordance with chapter 515A, or a common interest 
        community declaration and plat or amendment complying with 
        section 515B.2-110, subsection (c), $10 for each certificate 
        upon which the document is registered and $30 for the filing of 
        the condominium or common interest community plat or amendment; 
           (16) for a copy of a condominium floor plan filed in 
        accordance with chapter 515, a copy of a condominium plat filed 
        pursuant to chapters 515 and in accordance with chapter 515A, or 
        a copy of a common interest community plat complying with 
        section 515B.2-110, subsection (c), the fee shall be $1 for each 
        page of the floor plan, condominium plat, or common interest 
        community plat with a minimum fee of $10; 
           (16) for filing a condominium declaration and plat or an 
        amendment to it in accordance with chapter 515A, $10 for each 
        certificate upon which the document is registered and $30 for 
        the filing of the condominium plat or an amendment thereto; 
           (17) for the filing of a certified copy of a plat of the 
        survey pursuant to section 508.23 or 508.671, $10; 
           (18) for filing a registered land survey in triplicate in 
        accordance with section 508.47, subdivision 4, $30; 
           (19) for furnishing a certified copy of a registered land 
        survey in accordance with section 508.47, subdivision 4, $10. 
           Sec. 21.  Minnesota Statutes 1998, section 508A.82, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STANDARD DOCUMENTS.] The fees to be paid 
        to the registrar shall be as follows:  
           (1) of the fees provided herein, five percent of the fees 
        collected under clauses (3), (4), (10), (12), (13), (14), (16), 
        and (18), for filing or memorializing shall be paid to the state 
        treasurer and credited to the general fund; plus a $4.50 
        surcharge shall be charged and collected in addition to the 
        total fees charged for each transaction under clauses (2) to 
        (5), (10), (12), (14), and (18), with 50 cents of this surcharge 
        to be retained by the county to cover its administrative costs 
        and $4 to be paid to the state treasury and credited to the 
        general fund; 
           (2) for registering each original CPT, and issuing a 
        duplicate of it, $30; 
           (3) for registering each instrument transferring the fee 
        simple title for which a new CPT is issued and for the issuance 
        and registration of the new CPT, $30; 
           (4) for the entry of each memorial on a certificate and 
        endorsements upon duplicate CPTs, $15; 
           (5) for issuing each residue CPT, $20; 
           (6) for exchange CPTs, $10 for each CPT canceled and $10 
        for each new CPT issued; 
           (7) for each certificate showing condition of the register, 
        $10; 
           (8) for any certified copy of any instrument or writing on 
        file in the registrar's office, the same fees allowed by law to 
        county recorders for like services; 
           (9) for a noncertified copy of any instrument or writing on 
        file in the office of the registrar of titles, or any specified 
        page or part of it, an amount as determined by the county board 
        for each page or fraction of a page specified.  If computer or 
        microfilm printers are used to reproduce the instrument or 
        writing, a like amount per image; 
           (10) for filing two copies of any plat in the office of the 
        registrar, $30; 
           (11) for any other service under sections 508A.01 to 
        508A.85, the fee the court shall determine; 
           (12) for issuing a duplicate CPT pursuant to the directive 
        of the examiner of titles in counties in which the compensation 
        of the examiner is paid in the same manner as the compensation 
        of other county employees, $50, plus $10 to memorialize; 
           (13) for issuing a duplicate CPT pursuant to the directive 
        of the examiner of titles in counties in which the compensation 
        of the examiner is not paid by the county or pursuant to an 
        order of the court, $10; 
           (14) for filing a condominium plat or an amendment to it a 
        declaration in accordance with chapter 515, $10 for each 
        certificate upon which the document is registered and $30 for an 
        amended floor plan filed in accordance with chapter 515; 
           (15) for filing an amendment to a condominium declaration 
        or plat in accordance with chapter 515A, or a common interest 
        community declaration and plat or amendment complying with 
        section 515B.2-110, subsection (c), $10 for each certificate 
        upon which the document is registered and $30 for the filing of 
        the condominium or common interest community plat or amendment; 
           (16) for a copy of a condominium floor plan filed in 
        accordance with chapter 515, a copy of a condominium plat filed 
        pursuant to chapters 515 and in accordance with chapter 515A, or 
        a copy of a common interest community plat complying with 
        section 515B.2-110, subsection (c), the fee shall be $1 for each 
        page of the floor plan, condominium plat, or common interest 
        community plat with a minimum fee of $10; 
           (16) for filing a condominium declaration and condominium 
        plat or an amendment to it in accordance with chapter 515A, $10 
        for each certificate upon which the document is registered and 
        $30 for the filing of the condominium plat or an amendment to 
        it; 
           (17) in counties in which the compensation of the examiner 
        of titles is paid in the same manner as the compensation of 
        other county employees, for each parcel of land contained in the 
        application for a CPT, as the number of parcels is determined by 
        the examiner, a fee which is reasonable and which reflects the 
        actual cost to the county, established by the board of county 
        commissioners of the county in which the land is located; 
           (18) for filing a registered land survey in triplicate in 
        accordance with section 508A.47, subdivision 4, $30; 
           (19) for furnishing a certified copy of a registered land 
        survey in accordance with section 508A.47, subdivision 4, $10. 
                                   ARTICLE 4 
           Section 1.  Minnesota Statutes 1998, section 359.02, is 
        amended to read: 
           359.02 [TERM.] 
           A notary commissioned under section 359.01 holds office for 
        five years, unless sooner removed by the governor or the 
        district court, or by action of the commissioner.  Within 30 
        days seven months before the expiration of the commission a 
        notary may be reappointed for a new term to commence and to be 
        designated in the new commission as beginning upon the day 
        immediately following the date of the expiration.  The 
        reappointment takes effect and is valid although the appointing 
        governor may not be in the office of governor on the effective 
        day. 
           (a) All notary commissions issued before January 31, 1995, 
        will expire on January 31, 1995. 
           (b) All notary commissions issued after January 31, 1995, 
        will expire at the end of the licensing period, which will end 
        every fifth year following January 31, 1995. 
           (c) All notary commissions issued during a licensing period 
        expire at the end of that period as set forth in this section. 
           Sec. 2.  Minnesota Statutes 1998, section 386.31, is 
        amended to read: 
           386.31 [CONSECUTIVE NUMBERING.] 
           Each county recorder shall endorse plainly upon each 
        instrument received for record or filing as soon as received a 
        number consecutive, to the extent practicable, to the number 
        affixed to the instrument next previously received and enter 
        such number as a part of the entry relating to such instrument 
        in all the indexes kept in the office and on the margin of the 
        record of the instrument, and such number shall be prima facie 
        evidence of priority of registration.  If more than one 
        instrument shall be received at the same time, by mail or other 
        like enclosure, the recorder shall affix such number in the 
        order directed by the sender; if no direction be given, then in 
        the order in which the instruments actually come to the 
        recorder's hand in opening the enclosures. 
           Sec. 3.  Minnesota Statutes 1998, section 507.421, is 
        amended to read: 
           507.421 [ESTATES AND TRUSTS; CONVEYANCES, SATISFACTIONS, 
        GRANTS, AND RELEASES.] 
           Subdivision 1.  [MADE TO ESTATE OR TRUST.] A conveyance or 
        grant of an interest in real or personal property made to the 
        estate of a decedent, to the estate of a ward or conservatee, to 
        the ward's or conservatee's guardian or conservator, or to a 
        trust, including a trust in the form of a pension or 
        profit-sharing plan, that names the estate, the guardian, the 
        conservator, or the trust as the grantee of the interest, is a 
        valid and effective conveyance or grant of the interest to the 
        personal representative, guardian, or conservator of the 
        estate to the ward or conservatee, or to the trustee of the 
        trust, in like manner and effect as if the personal 
        representative, guardian, conservator ward, conservatee, or 
        trustee had been named the grantee of the conveyance or grant. 
           Subd. 2.  [MADE BY ESTATE OR TRUST.] A satisfaction, 
        release, conveyance, or grant of an interest in real or personal 
        property that is made by an estate, a guardian, a conservator, 
        or trust described in subdivision 1, that names the estate, the 
        guardian, the conservator, or trust as the holder or grantor of 
        the interest, and that is executed by the personal 
        representative, guardian, conservator ward, conservatee, or 
        trustee authorized to execute the instrument, is a valid and 
        effective satisfaction, release, conveyance, or grant of the 
        interest, in like manner and effect as if the personal 
        representative, guardian, conservator, or trustee had been named 
        the holder or the grantor in the satisfaction, release, 
        conveyance, or grant. 
           Sec. 4.  Minnesota Statutes 1998, section 559.21, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [FOR POST 7/31/1985 CONTRACT.] If a default 
        occurs in the conditions of a contract for the conveyance of 
        real estate or an interest in real estate executed on or after 
        August 1, 1985, that gives the seller a right to terminate it, 
        the seller may terminate the contract by serving upon the 
        purchaser or the purchaser's personal representatives or 
        assigns, within or outside of the state, a notice specifying the 
        conditions in which default has been made.  The notice must 
        state that the contract will terminate 60 days, or a shorter 
        period allowed in subdivision 4, after the service of the 
        notice, unless prior to the termination date the purchaser: 
           (1) complies with the conditions in default; 
           (2) 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 of the notice, including the 
        reasonable costs of service by sheriff, public officer, or 
        private process server; except payment of costs of service is 
        not required unless the seller notifies the purchaser of the 
        actual costs of service by certified mail to the purchaser's 
        last known address at least ten days prior to the date of 
        termination; 
           (4) except for earnest money contracts, purchase 
        agreements, and exercised options, pays two percent of any 
        amount in default at the time of service, not including the 
        final balloon payment, any taxes, assessments, mortgages, or 
        prior contracts that are assumed by the purchaser; and 
           (5) if the contract is executed on or after August 1, 1999, 
        pays an amount to apply on attorneys' fees actually expended or 
        incurred, of $250 if the amount in default is less than $1,000, 
        and of $500 if the amount in default is $1,000 or more; or if 
        the contract is executed before August 1, 1999, pays an amount 
        to apply on attorneys' fees actually expended or incurred, of 
        $125 if the amount in default is less than $750, and of $250 if 
        the amount in default is $750 or more; except that no amount for 
        attorneys' fees is required to be paid unless some part of the 
        conditions of default has existed for at least 30 days prior to 
        the date of service of the notice.  
           Sec. 5.  Minnesota Statutes 1998, section 582.32, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FORECLOSURE PROCEDURE; NOTICE TO CREDITORS.] (a) 
        After the date of agreement, the mortgagee may proceed to 
        foreclose the mortgage in accordance with the laws generally 
        applicable to foreclosure by advertisement including this 
        chapter and chapter 580, except as otherwise provided in this 
        section.  
           (b) At least 14 days before the date of sale, the mortgagee 
        shall:  
           (1) serve the persons in possession of the real estate with 
        notice of the voluntary foreclosure sale under this section in 
        the same manner as in a foreclosure by advertisement as provided 
        in section 580.03; and 
           (2) mail notice of the voluntary foreclosure sale under 
        this section to each holder of a junior lien who has filed or 
        recorded a request for notice under section 580.032.  
           (c) The mortgagee shall publish notice of the voluntary 
        foreclosure sale under this section in the same manner as in a 
        foreclosure by advertisement as provided in section 580.03 for 
        four consecutive weeks.  The notice must include all information 
        required under section 580.04, clauses (1) to (6), the date of 
        agreement, and shall state that each holder of a junior lien may 
        redeem in the order and manner provided in subdivision 9, 
        beginning after the expiration of the mortgagor's two-month 
        redemption period under this section.  
           (d) The mortgagor's redemption period is two months from 
        the date of sale, except that if the real estate is subject to a 
        federal tax lien under which the United States is entitled to a 
        120-day redemption period under section 7425(d)(1) of the 
        Internal Revenue Code, as amended, the mortgagor's redemption 
        period is 120 days from the date of sale.  The certificate of 
        sale must indicate the redemption period applicable under this 
        paragraph. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Section 1 is effective July 1, 1999. 
           Presented to the governor March 11, 1999 
           Signed by the governor March 15, 1999, 2:35 p.m.