Office of the Revisor of Statutes
Minnesota Session Laws - 1999, Regular Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes