Office of the Revisor of Statutes
Minnesota Session Laws - 2000, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 320-S.F.No. 2510
An act relating to real property; common interest
ownership communities; redemptions of realty; making
technical changes; modifying procedural requirements;
amending Minnesota Statutes 1998, sections 115.55,
subdivision 7; 514.15; 550.24; 580.24; and 581.10;
Minnesota Statutes 1999 Supplement, sections
515B.1-102; and 515B.1-116; repealing Minnesota
Statutes 1998, section 550.25.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, section 115.55,
subdivision 7, is amended to read:
Subd. 7. [LOCAL STANDARDS.] (a) [EXISTING SYSTEMS.]
Counties may adopt by ordinance local standards that are less
restrictive than the agency's rules in order to define an
acceptable existing system. The local standards may include
soil separation, soil classification, vegetation, system use,
localized well placement and construction, localized density of
systems and wells, extent of area to be covered by local
standards, groundwater flow patterns, and existing natural or
artificial drainage systems. The local standards and criteria
shall be submitted to the commissioner for comment prior to
adoption to demonstrate that, based on local circumstances in
that jurisdiction, they adequately protect public health and the
environment.
(b) [NEW OR REPLACEMENT SYSTEMS.] Counties, after
providing documentation of conditions listed in this paragraph
to the commissioner, may adopt by ordinance local standards that
are less restrictive than the agency's rules for new system
construction or replacement in areas of sustained and projected
low population density where conditions render conformance to
applicable requirements difficult or otherwise inappropriate.
Documentation may include a map delineating the area of the
county to be served by the local standards, a description of the
hardship that would result from strict adherence to the agency's
rules, and evidence of sustained and projected low population
density. The local standards must protect human health and the
environment and be based on considerations that may include, but
need not be limited to, soil separation, soil classification,
vegetation, system use, localized well placement and
construction, localized density of systems and wells, extent of
area to be covered by local standards, groundwater flow
patterns, and existing natural or artificial drainage systems.
The local standards must provide cost-effective and long-term
treatment alternatives. The draft ordinance incorporating the
local standards must be submitted to the local water planning
advisory committee, created under section 103B.321, subdivision
3, and then submitted with justification to the commissioner 30
days before adoption for review and comment.
(c) [NEW OR REPLACEMENT SYSTEMS; LOCAL ORDINANCES.] A
local unit of government may adopt and enforce ordinances or
rules affecting new or replacement individual sewage treatment
systems that are more restrictive than the agency's rules. A
local unit of government may not adopt or enforce an ordinance
or rule if its effect is to prevent or delay recording with the
county recorder or registrar of titles of a deed or other
instrument that is otherwise entitled to be recorded.
(d) [LOCAL STANDARDS; CONFLICT WITH STATE LAW.] Local
standards adopted under paragraph (a) or (b) must not conflict
with any requirements under other state laws or rules or local
ordinances, including, but not limited to, requirements for:
(1) systems in shoreland areas, regulated under sections
103F.201 to 103F.221;
(2) well construction and location, regulated under chapter
103I; and
(3) systems used in connection with food, beverage, and
lodging establishments, regulated under chapter 157.
The local standards must include references to applicable
requirements under other state laws or rules or local ordinances.
Sec. 2. Minnesota Statutes 1998, section 514.15, is
amended to read:
514.15 [JUDGMENT, SALE, REDEMPTION.]
The judgment shall direct a sale of the real estate or
other property for the satisfaction of all liens charged
thereon, and the manner of such sale, subject to the rights of
all persons which are paramount to such liens or any of them.
It shall require the officer making such sale to pay over and
distribute the proceeds of the sale, after deducting all lawful
charges and expenses, to and among the lienors to the amount of
their respective claims, if there is sufficient therefor; and if
there is not sufficient then to divide and distribute the same
among the several lienors in proportion to the amount due to
each, and without priority among themselves. If the estate sold
be a leasehold having not more than two years to run, or be the
interest of a vendee under an executory contract of sale the
conditions whereof are to be performed within the same period,
no redemption shall be allowed; in all other cases the right of
redemption shall be the same as upon execution sales under
section 550.24, except that the period of redemption shall be
six months from the date the sale is confirmed by the court. No
sale shall be deemed complete until reported to and confirmed by
the court.
Sec. 3. Minnesota Statutes 1999 Supplement, section
515B.1-102, is amended to read:
515B.1-102 [APPLICABILITY.]
(a) Except as provided in this section, this chapter, and
not chapters 515 and 515A, applies to all common interest
communities created within this state on and after June 1, 1994.
(b) The applicability of this chapter to common interest
communities created prior to June 1, 1994, shall be as follows:
(1) This chapter shall apply to condominiums created under
chapter 515A with respect to events and circumstances occurring
on and after June 1, 1994; provided (i) that this chapter shall
not invalidate the declarations, bylaws or condominium plats of
those condominiums, and (ii) that chapter 515A, and not this
chapter, shall govern all rights and obligations of a declarant
of a condominium created under chapter 515A, and the rights and
claims of unit owners against that declarant.
(2) The following sections 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). Section 515B.1-103 (Definitions)
shall apply to the extent necessary in construing any of the
sections referenced in this section. Sections 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. All other
sections referenced in this section apply only with respect to
events and circumstances occurring after May July 31, 1999. A
section referenced in this section does not invalidate the
declarations, bylaws or condominium plats of condominiums
created before August 1, 1999. But all sections referenced in
this section prevail over the declarations, bylaws, CIC plats,
rules and regulations under them, of condominiums created before
August 1, 1999, 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, unless they
are exempt under subsection (e).
(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 cooperative where, at the time of creation of the
cooperative, the unit owners' interests in the dwellings as
described in the declaration consist solely of proprietary
leases having an unexpired term of fewer than 20 years,
including renewal options;
(4) planned communities and cooperatives limited by the
declaration to nonresidential use; or
(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. 4. Minnesota Statutes 1999 Supplement, section
515B.1-116, is amended to read:
515B.1-116 [RECORDING.]
(a) A declaration, bylaws, any amendment to a declaration
or bylaws, and any other instrument affecting a common interest
community shall be entitled to be recorded. 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 a recorded document relating to a common interest community
purports to require the execution of a certain vote or
signatures approving any restatement or amendment of the
document by a certain number or 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 signatures have been obtained 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. 5. Minnesota Statutes 1998, section 550.24, is
amended to read:
550.24 [REDEMPTION OF REALTY.]
Upon the sale of real property, where if the estate sold is
less than a leasehold of two years' unexpired term, the sale is
absolute;. In all other cases the property sold, or any portion
thereof which has been sold separately, is subject to redemption:
(1) By as provided in this section. The judgment debtor,
the debtor's heirs, successors, legal representatives, or
assigns;
(2) By a creditor may redeem within one year after the day
of sale by paying, to the purchaser or the officer making the
sale, the amount for which the property was sold with interest
at the judgment rate and if the purchaser is a creditor having a
prior lien, the amount thereof, with interest at the judgment
rate. If there is no redemption during the debtor's redemption
period, creditors having a lien, legal or equitable, on the
property or some part thereof, subsequent to that on which it
was sold.
Creditors shall may redeem in the manner provided for
redemption by creditors of the mortgagor in section 580.24, in
the order of their respective liens.
Sec. 6. Minnesota Statutes 1998, section 580.24, is
amended to read:
580.24 [REDEMPTION BY CREDITOR.]
If no such redemption be made by the mortgagor, the
mortgagor's personal representatives or assigns, the senior
creditor having a lien, legal or equitable, upon the mortgaged
premises, or some part thereof, subsequent to the mortgage, may
redeem within seven days after the expiration of the redemption
period determined under section 580.23 or 582.032, whichever is
applicable; and each subsequent creditor having a lien in
succession, according to priority of liens, within seven days
after the time allowed the prior lienholder, respectively, may
redeem by paying the amount aforesaid and all liens prior to the
lienholder's own held by the person from whom redemption is
made; provided that no creditor shall be entitled to redeem
unless within the period allowed for redemption by the
mortgagor, the creditor file for record notice of intention to
redeem with the county recorder or registrar of titles of each
county where the mortgage is recorded. Saturdays, Sundays,
legal holidays, and the first day following the expiration of
the prior redemption period must be included in computing the
seven-day redemption period. When the last day of the period
falls on Saturday, Sunday, or a legal holiday, that day must be
omitted from the computation. All mechanic's lienholders who
have coordinate liens shall have one combined seven-day period
to redeem.
Sec. 7. Minnesota Statutes 1998, section 581.10, is
amended to read:
581.10 [REDEMPTION BY MORTGAGOR, CREDITOR.]
The mortgagor, or those claiming under the mortgagor,
within the time specified in section 580.23 or 582.032,
whichever applies, after the date of the order of confirmation,
may redeem the premises sold, or any separate portion thereof,
by paying the amount bid therefor, with interest thereon from
the time of sale at the rate provided to be paid on the mortgage
debt, not to exceed eight percent per annum, and, if no rate to
be provided in the mortgage, at the rate of six percent,
together with any further sum which may be payable pursuant to
section 582.03 and 582.031. Creditors having a lien may redeem
in the order and manner specified in section 580.24, but no
creditor shall be entitled to redeem unless within the
applicable redemption period the creditor files with the court
administrator notice of intention to redeem.
Sec. 8. [APPLICABILITY.]
Sections 2, 5, 6, and 7 apply to redemptions where the
owner's period of redemption has not expired before August 1,
2000.
Sec. 9. [REPEALER.]
Minnesota Statutes 1998, section 550.25, is repealed.
Sec. 10. [EFFECTIVE DATE.]
Sections 3 and 4 are effective the day following final
enactment.
Presented to the governor March 31, 2000
Signed by the governor April 4, 2000, 3:50 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes