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Office of the Revisor of Statutes

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.