language to be deleted (2) new language
CHAPTER 97-H.F.No. 1178 An act relating to landlords and tenants; regulating the taking of prelease deposits; providing for a civil penalty; proposing coding for new law in Minnesota Statutes, chapter 504. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. [504.38] [PRELEASE DEPOSIT.] Subdivision 1. [DEFINITION.] For the purpose of this section, "prelease deposit" means payment given to a landlord from a prospective tenant of a residential dwelling unit before the prospective tenant and the landlord have entered into a rental agreement. "Prelease deposit" does not include the payment of a reasonable applicant screening fee used to conduct a background check on the prospective tenant. Subd. 2. [LIMITATIONS.] (a) A prelease deposit may be accepted only if the landlord and prospective tenant enter into a conspicuous written agreement that includes: (1) the circumstances under which it will be returned; and (2) that the landlord is required to return the prelease deposit within seven days of the occurrence of a circumstance described in clause (1). (b) "Return" means postmarked within seven days except that upon the prospective tenant's request, a landlord may destroy the payment or hold it for retrieval by the tenant instead of returning it by mail. Subd. 3. [APPLICATION ON ENTRY INTO RENTAL AGREEMENT.] If a prospective tenant and landlord do enter into a rental agreement, the prelease deposit must be applied to that tenant's security deposit or rent. Subd. 4. [REMEDIES.] In addition to any other remedies, a landlord who violates this section is liable to the payor of the prelease deposit for the amount of the deposit paid, plus one-half of that amount as a penalty. A landlord who enters into a rental agreement with a tenant is not liable under this section unless the landlord failed to comply with subdivision 3. Presented to the governor April 22, 1999 Signed by the governor April 26, 1999, 1:10 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes