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Minnesota Legislature

Office of the Revisor of Statutes

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

                             CHAPTER 50-H.F.No. 239 
                  An act relating to real property; clarifying law 
                  relating to servitudes created by a common owner of 
                  multiple pieces of property; providing for filing of 
                  an amended application to register land; authorizing 
                  attorney general to represent state in certain torrens 
                  proceedings; providing for issuance of certificates of 
                  title for common elements in a condominium; permitting 
                  owners of certain land to request new certificates of 
                  title; modifying certificates of possessory title; 
                  modifying Minnesota Common Interest Ownership Act; 
                  exempting registered/torrens land from the 40 year 
                  law; amending Minnesota Statutes 2000, sections 
                  508.09; 508.16, subdivision 1; 508.421, by adding a 
                  subdivision; 508.82, subdivision 1; 508A.01, 
                  subdivision 2; 508A.08; 508A.09; 508A.10; 508A.11, 
                  subdivisions 1 and 2; 508A.17, subdivision 1; 508A.22, 
                  subdivisions 1 and 3; 508A.25; 508A.35; 508A.351, by 
                  adding subdivisions; 508A.421, by adding a 
                  subdivision; 508A.82, subdivision 1; 508A.85, 
                  subdivision 4; 515B.1-116; 515B.3-104; 515B.3-117; and 
                  541.023, subdivisions 1, 2, 4, 6, 7, and by adding a 
                  subdivision; proposing coding for new law in Minnesota 
                  Statutes, chapters 507; 508; and 508A; repealing 
                  Minnesota Statutes 2000, sections 508.71, subdivision 
                  7; 508A.22, subdivision 2; 508A.27; and 508A.351, 
                  subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [507.47] [CREATION OF SERVITUDES BY COMMON 
        OWNER.] 
           An easement, condition, restriction, or other servitude 
        that is imposed on real property by a recorded instrument and is 
        not in violation of law or public policy, is valid 
        notwithstanding the common ownership, when the easement, 
        condition, restriction, or other servitude is imposed, of any of 
        the real property burdened or benefited by the easement, 
        condition, restriction, or other servitude.  A conveyance of all 
        or any portion of the real property includes the benefits and 
        burdens of all easements, conditions, restrictions, or other 
        servitudes validated under this section, except as provided by 
        sections 500.20 and 541.023.  The common law doctrine of merger, 
        and not this section, applies whenever, after ownership of any 
        of the real property is severed, all of the real property 
        burdened or benefited by an easement, condition, restriction, or 
        other servitude again is owned by a common owner. 
           Sec. 2.  Minnesota Statutes 2000, section 508.09, is 
        amended to read: 
           508.09 [AMENDMENT.] 
           Amendments to the application, including joinder, 
        substitution, or discontinuance as to parties, may be allowed by 
        the court at any time upon terms that are just and reasonable, 
        but all amendments shall be in writing and signed and verified 
        like the original application.  A person who acquires the 
        original applicant's estate in all or part of the land by 
        voluntary instrument from the original applicant may be 
        substituted for the applicant as to the land acquired by 
        executing and filing an amendment without payment of the fees 
        specified in section 357.021, subdivision 2, clause (1). 
           Sec. 3.  Minnesota Statutes 2000, section 508.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SUBSCRIBED BY ADMINISTRATOR; COPIES.] The 
        summons shall be subscribed by the court administrator, directed 
        to the defendants, and require them to appear and answer the 
        application of the applicant, within 20 days after the service 
        of the summons, exclusive of the day of such service.  It shall 
        be served in the manner as provided by law for the service of a 
        summons in civil actions in the district court, except as herein 
        otherwise provided.  It shall be served upon the state by 
        delivering a copy thereof to the attorney general, a deputy 
        attorney general or an assistant attorney general who shall 
        transmit the same.  The attorney general shall represent the 
        state in these proceedings.  In those cases where the attorney 
        general deems it appropriate, the attorney general may transmit 
        the matter to the county attorney of the county in which the 
        land described therein is situated, and thereupon such county 
        attorney shall appear in such proceeding, and represent the 
        state therein.  It shall be served upon a domestic corporation 
        governed by chapter 302A whose charter has terminated by 
        dissolution, expiration, or otherwise, by delivering a copy of 
        it to a person, known to the applicant, who held office in the 
        corporation at the time of dissolution and can be found in the 
        state or, if no officer known to the applicant can be found in 
        the state, by publishing the summons in a newspaper printed and 
        published in the county where the application is filed, once 
        each week for three consecutive weeks.  It shall be served upon 
        all persons not personally served who are not residents of the 
        state or who cannot be found therein, and upon domestic 
        corporations not governed by chapter 302A whose charter has 
        terminated by dissolution, expiration, or otherwise more than 
        three years prior to the commencement of the action, and upon 
        unknown successors in interests of such corporations, and upon 
        "all other persons or parties unknown claiming any right, title, 
        estate, lien, or interest in the real estate described in the 
        application herein" by publishing the same in a newspaper 
        printed and published in the county wherein the application is 
        filed, once each week for three consecutive weeks; provided, if 
        the order for summons or a supplemental order of the court, 
        filed before, during or after the publication of the summons, 
        shall so direct, the summons may be personally served without 
        the state upon any one or more of the defendants who are 
        nonresidents of the state or who cannot be found therein, in 
        like manner and with like effect as such service in a summons in 
        a civil action in the district court; and provided further, that 
        any nonresident defendant, natural or corporate, who can be 
        found in the state of Minnesota and can be personally served 
        therein, may be served personally.  The court administrator 
        shall also, at least 20 days before the entry of the decree 
        which shall be entered in the matter, send a copy of the summons 
        by mail to all defendants not served personally who are not 
        residents of the state, and whose place of address is known to 
        applicant or stated in the application, or in the order 
        directing the issuance of the summons.  The certificate of the 
        court administrator that the court administrator has mailed the 
        summons, as herein provided, shall be conclusive evidence 
        thereof.  Other or further notice of the application for 
        registration may be given in such manner and to such persons as 
        the court or any judge thereof may direct.  The summons shall be 
        served at the expense of the applicant and proof of the service 
        shall be made in the same manner as in civil actions.  The 
        summons shall be substantially in the following form: 
                SUMMONS IN APPLICATION FOR REGISTRATION OF LAND 
           State of Minnesota 
                                      ss. 
           County of ........ 
           District Court ...... Judicial District. 
           In the matter of the application of (name of applicant) to 
        register the title to the following described real estate 
        situated in ............. county, Minnesota, namely:  
        (description of land) .................. 
           Applicant, 
                                       vs 
           (names of defendants) and "all other persons or parties 
        unknown claiming any right, title, estate, lien or interest in 
        the real estate described in the application herein." 
           Defendants. 
             THE STATE OF MINNESOTA TO THE ABOVE NAMED DEFENDANTS: 
           You are hereby summoned and required to answer the 
        application of the applicant in the above entitled proceeding 
        and to file your answer to the said application in the office of 
        the court administrator of said court, in said county, within 20 
        days after service of this summons upon you exclusive of the day 
        of such service, and, if you fail to answer the application 
        within the time aforesaid, the applicant in this proceeding will 
        apply to the court for the relief demanded therein. 
           Witness ........ court administrator of said court, and the 
        seal thereof, at .........., in said county, this ........ day 
        of .........., ..... 
           (Seal) 
         
                                              .........................
                                                 Court administrator
           Sec. 4.  [508.351] [CONDOMINIUM CERTIFICATE.] 
           Subdivision 1.  [DECLARATION.] Prior to filing with the 
        registrar of titles of a declaration or bylaws for a 
        condominium, or an amendment to the declaration or bylaws, a 
        determination must be made by an order of court in a proceeding 
        subsequent to initial registration or by a written directive of 
        the examiner of titles that the documents comply with the 
        requirements of the applicable condominium statute. 
           Subd. 2.  [FORM OF COMMON ELEMENTS CERTIFICATE OF 
        TITLE.] Upon the filing of a declaration creating a condominium, 
        the registrar shall issue a certificate of title, designated as 
        a "common elements certificate of title," ("CECT").  It must be 
        in substantially the following form: 
                 COMMON ELEMENTS CERTIFICATE OF TITLE (CECT)
           This is the Common Elements Certificate of Title for 
        Condominium CIC No. ....... 
        State of Minnesota     )
                               ) SS.
        County of .............)
           This is to certify that the common elements in condominium 
        CIC No. ....... are subject to the encumbrances, liens, and 
        interests noted by the memorials set forth as follows: 
           
           
           
           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
           Subd. 3.  [TRACT INDEX.] CECTs must be maintained in the 
        same manner as provided for certificates of title and must be 
        indexed in the tract index as provided in section 508.37, 
        subdivision 1a.  The names of the owners in the tract index must 
        be "unit owners."  The description of the registered land in the 
        tract index must be "common elements" or "CECT."  
           Subd. 4.  [UNIT CERTIFICATES.] Certificates of title issued 
        for the units described in the declaration must contain, 
        immediately following the description of the Unit, a statement 
        in substantially the following form:  "Subject to encumbrances, 
        liens, and interests noted on CECT No. ......." 
           Subd. 5.  [MEMORIALS.] The condominium declaration, bylaws, 
        any amendment to the declaration or bylaws; any lien against the 
        common elements pursuant to chapter 514; any fixture filing 
        pursuant to section 336.9-314 where the financing statement 
        describes the common elements; any easement on the common 
        elements pursuant to section 515B.3-102, subsection (a)(9); any 
        instrument evidencing the transfer of a special declarant right 
        pursuant to section 515B.3-104; and any conveyance or 
        encumbrance of the common elements pursuant to section 
        515B.3-112 must be entered as memorials on the CECT only. 
           Subd. 6.  [PREEXISTING CONDOMINIUMS.] In the case of a 
        condominium existing prior to August 1, 2001, on registered 
        land, for which no CECT has been issued, upon the filing of a 
        document of the kind specified in subdivision 5, the registrar 
        shall issue a CECT, but documents filed prior to the issuance of 
        the CECT need not be entered as memorials on the CECT.  The 
        registrar for no additional fee shall mark by the land 
        description on the certificate of title for each of the units in 
        the condominium a statement in substantially the following 
        form:  "subject to encumbrances, liens, and interests noted in 
        CECT No. ......." and in future certificates for each unit in 
        the condominium, insert immediately following the description of 
        the unit, a statement in substantially the following form:  
        "subject to encumbrances, liens, and interests noted on CECT No. 
        ......." 
           Sec. 5.  Minnesota Statutes 2000, section 508.421, is 
        amended by adding a subdivision to read:  
           Subd. 1a.  [REISSUANCE.] The owner of registered land may 
        request the registrar of titles to issue a new certificate of 
        title free from the memorials of all interests which have 
        terminated. 
           Sec. 6.  Minnesota Statutes 2000, 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), (5), (10) (11), (12) (13), 
        (14), (15), and (16), and (17), 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), and (16), (3), (5), (11), (13), 
        (14), (16), and (17), 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 a first certificate of title, including 
        issuing a 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 registration of the new certificate of title, including 
        a copy of it, $30; 
           (4) for issuance of a CECT pursuant to section 508.351, 
        $15; 
           (5) for the entry of each memorial on a certificate, $15; 
           (5) (6) for issuing each residue certificate, $20; 
           (6) (7) for exchange certificates, $10 for each certificate 
        canceled and $10 for each new certificate issued; 
           (7) (8) for each certificate showing condition of the 
        register, $10; 
           (8) (9) 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) (10) for a noncertified copy of any certificate of 
        title, 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) (11) for filing two copies of any plat in the office 
        of the registrar, $30; 
           (11) (12) for any other service under this chapter, such 
        fee as the court shall determine; 
           (12) (13) for filing an amendment to 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; 
           (13) (14) 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; 
           (14) (15) for a copy of a condominium floor plan filed in 
        accordance with chapter 515, a copy of a condominium plat filed 
        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; 
           (15) (16) for the filing of a certified copy of a plat of 
        the survey pursuant to section 508.23 or 508.671, $10; 
           (16) (17) for filing a registered land survey in triplicate 
        in accordance with section 508.47, subdivision 4, $30; 
           (17) (18) for furnishing a certified copy of a registered 
        land survey in accordance with section 508.47, subdivision 4, 
        $10. 
           Sec. 7.  Minnesota Statutes 2000, section 508A.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURPOSE.] The purpose of sections 508A.01 to 
        508A.85 is to provide a voluntary procedure for registration of 
        certain possessory estates in land with certainty, at reasonable 
        cost and speed, and without the necessity for the initial 
        adjudication required by chapter 508, and to provide for initial 
        registration of land under a certificate of possessory title 
        ("CPT").  Upon the expiration of five years from the date of the 
        examiner's supplemental directive is filed on the first CPT, the 
        registrar of titles shall cancel the CPT and issue a certificate 
        of title as provided in section 508A.85, subdivisions 2 and 3.  
           Sec. 8.  Minnesota Statutes 2000, section 508A.08, is 
        amended to read: 
           508A.08 [LANDS INCLUDED IN APPLICATION; CONTENTS.] 
           Subdivision 1.  [ADJACENT LAND; COMMON OWNER.] Any number 
        of adjoining tracts of land in the same county and owned by the 
        same person and in the same right, or any number of tracts of 
        land in the same county having the same chain of title, and 
        belonging to the same person may be included in one 
        application.  When approved by the examiner of titles on 
        petition of the applicant or applicants, nonadjoining tracts of 
        land owned by the same person or persons in the same right 
        having different chains of title may be included in one 
        application.  
           Subd. 2.  [ADJACENT LAND; DIFFERENT OWNERS.] When approved 
        by the examiner of titles, owners of two or more adjacent tracts 
        of land in the same county may join in one application to 
        register the title to their individual tracts.  The application 
        must list separately all of the information required by section 
        508A.06 for the owner or owners of each of the tracts included 
        in the application. 
           Sec. 9.  Minnesota Statutes 2000, section 508A.09, is 
        amended to read: 
           508A.09 [AMENDMENT.] 
           Amendments to the application may be allowed by the 
        examiner of titles at any time upon terms that are just and 
        reasonable, but all amendments shall be in writing and signed 
        and verified like the original application.  A person who 
        acquires the original applicant's estate in all or part of the 
        land by voluntary instrument from the original applicant may be 
        substituted for the applicant as to the land acquired by 
        executing an amendment. 
           Sec. 10.  Minnesota Statutes 2000, 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, and 
        initial directives, and supplemental directives to the registrar 
        regarding initial CPTs 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. 11.  Minnesota Statutes 2000, section 508A.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION FILED WITH COUNTY RECORDER.] A 
        certified copy of the application shall be delivered to the 
        examiner of titles.  After approval by the examiner of titles, 
        the application for a CPT shall be filed for record in the 
        office of the county recorder, and shall be notice forever to 
        all purchasers and encumbrancers of the pendency of the 
        registration and of all matters referred to in the files and 
        records of the examiner of titles and of the registrar of titles 
        pertaining to the registration.  The applicant shall deliver a 
        certified copy of the recorded application to the examiner of 
        titles. 
           Sec. 12.  Minnesota Statutes 2000, section 508A.11, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ABSTRACT SUPPLIED.] The applicant shall deliver 
        to the examiner of titles an abstract of title certified or 
        recertified in a manner satisfactory to the examiner of titles 
        shall be delivered to the examiner.  In the event the examiner 
        refuses to direct the issuance of a CPT, the abstract shall be 
        returned.  Otherwise, the abstract shall be returned to the 
        applicant only at the time and under the conditions as the 
        examiner shall determine.  
           Sec. 13.  Minnesota Statutes 2000, section 508A.17, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LIMITATION.] As against a title to land 
        registered under a CPT which has been entered and maintained by 
        the registrar under sections 508A.01 to 508A.85, no action 
        affecting the possession or title to the land shall be commenced 
        by any person, partnership, corporation, state, or political 
        subdivision to enforce any right, title, estate, lien, or 
        interest founded upon any instrument, event, or transaction 
        which was executed or occurred before the entry of the first CPT 
        and which is not set out as a separate memorial on the CPT or 
        covered by section 508A.25, clauses (1) to (5) and (8) (7) 
        unless the action is commenced and a notice of lis pendens of it 
        is registered upon the CPT within a period of five years from 
        the date the examiner's supplemental directive is filed on of 
        the first CPT.  
           Sec. 14.  Minnesota Statutes 2000, section 508A.22, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DIRECTIVE.] The examiner of titles, upon 
        being satisfied that the applicant is entitled to a CPT, but not 
        earlier than 20 days from the date of mailing of the notice 
        required by section 508A.13, shall issue a written directive to 
        the registrar of titles directing that the first CPT be issued 
        and entered in the name of the applicant, subject only to the 
        following:  (a) the exceptions set out in section 508A.25; 
        (b) separate memorials showing all outstanding rights, titles, 
        estates, liens, and interests set forth in the examiner's report 
        and any additional liens, encumbrances, or other interests 
        affecting the land, arising after the filing of the application; 
        and (c) a memorial of the examiner's directive which must state 
        that the land described in the directive is subject to the 
        rights of persons in possession, if any, and any rights which 
        would be disclosed by a survey except as those rights are 
        limited by section 508A.02, subdivision 1.  The examiner's 
        directive shall contain an accurate description of the land and 
        shall set forth the address of the applicant and, if the 
        applicant be is an individual, whether the applicant is 18 years 
        of age or older, and whether married or unmarried, and if 
        married, the name of the spouse; if the applicant is under any 
        legal incapacity, the nature of it shall be stated.  The 
        examiner shall deliver the abstract of title to the registrar of 
        titles who shall retain it, but it must not be entered as a 
        memorial on the CPT.  From the date of filing the examiner's 
        directive with the registrar of titles, all instruments 
        affecting title to the land which are registered shall be filed 
        in the office of the registrar of titles and be memorialized 
        upon the CPT. 
           Sec. 15.  Minnesota Statutes 2000, 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 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. 16.  Minnesota Statutes 2000, 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; 
           (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 of the first CPT; and 
           (8) (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. 17.  Minnesota Statutes 2000, 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 of and in the following described land situation 
        in the county of ....... and state of Minnesota, 
        ........................................  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 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; 
           (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) (6) 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 of the first CPT; and 
           (8) (7) 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. 18.  Minnesota Statutes 2000, section 508A.351, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [DECLARATION.] Prior to filing with the 
        registrar of titles of a declaration or bylaws for a 
        condominium, or an amendment to the declaration or bylaws, a 
        determination must be made by an order of court in a proceeding 
        subsequent to initial registration or by a written directive of 
        the examiner of titles that the documents comply with the 
        requirements of the applicable condominium statute. 
           Sec. 19.  Minnesota Statutes 2000, section 508A.351, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [FORM OF COMMON ELEMENTS CERTIFICATE OF 
        TITLE.] Upon the filing of a declaration creating a condominium, 
        the registrar shall issue a certificate of title, designated as 
        a "common elements certificate of title," ("CECT").  It must be 
        in substantially the following form: 
                  COMMON ELEMENTS CERTIFICATE OF TITLE (CECT)
           This is the Common Elements Certificate of Title for 
        Condominium CIC No. ........... 
        State of Minnesota      )
                                ) SS.
        County of ..............)
           This is to certify that the common elements in condominium 
        CIC No. ....... are subject to the encumbrances, liens, and 
        interests noted by the memorials set forth as follows: 
           
           
           
           In witness whereof, I have here unto 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
           Sec. 20.  Minnesota Statutes 2000, section 508A.351, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [TRACT INDEX.] CECTs must be maintained in the 
        same manner as provided for certificates of title under chapter 
        508 and must be indexed in the tract index as provided in 
        section 508.37, subdivision 1a.  The names of the owners in the 
        tract index must be "unit owners."  The description of the 
        registered land in the tract index must be "common elements" or 
        "CECT." 
           Sec. 21.  Minnesota Statutes 2000, section 508A.351, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [UNIT CERTIFICATES.] CPTs issued for the units 
        described in the declaration must contain, immediately following 
        the description of the unit, a statement in substantially the 
        following form:  "Subject to encumbrances, liens, and interests 
        noted on CECT No. ......." 
           Sec. 22.  Minnesota Statutes 2000, section 508A.351, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [MEMORIALS.] The condominium declaration, bylaws, 
        any amendment to the declaration or bylaws; any lien against the 
        common elements pursuant to chapter 514; any fixture filings 
        pursuant to section 336.9-314 where the financing statement 
        describes the common elements; any easement on the common 
        elements pursuant to section 515B.3-102, subsection (a)(9); any 
        instrument evidencing the transfer of a special declarant right 
        pursuant to section 515B.3-104; and any conveyance or 
        encumbrance of the common elements pursuant to section 
        515B.3-112 must be entered as memorials on the CECT only. 
           Sec. 23.  Minnesota Statutes 2000, section 508A.351, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [PREEXISTING CONDOMINIUMS.] In the case of a 
        condominium existing prior to August 1, 2001, on registered 
        land, for which no CECT has been issued, upon the filing of a 
        document of the kind specified in section 508.351, subdivision 
        4, the registrar shall issue a CECT, but documents filed prior 
        to the issuance of the CECT need not be entered as memorials on 
        the CECT.  The registrar for no additional fee shall mark by the 
        land description on the certificate of title for each of the 
        units in the condominium a statement in substantially the 
        following form:  "Subject to encumbrances, liens, and interests 
        noted in CECT No. ......." and in future certificates for each 
        unit in the condominium insert, immediately following the 
        description of the Unit, a statement in substantially the 
        following form:  "Subject to encumbrances, liens and interests 
        noted on CECT No.  ........" 
           Sec. 24.  Minnesota Statutes 2000, section 508A.421, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [REISSUANCE.] The owner of registered land may 
        request the registrar of titles to issue a new CPT free from the 
        memorials of all interests which have terminated. 
           Sec. 25.  [508A.422] [COMBINED CERTIFICATE.] 
           Subdivision 1.  [COMBINING CPT AND CERTIFICATE OF 
        TITLE.] The owner of registered land holding a CPT and a 
        certificate of title may request the registrar of titles to 
        issue a single certificate of title, to be known as a combined 
        certificate of title, for the lands described in the CPT and the 
        certificate of title.  The combined certificate of title must be 
        in the form prescribed in section 508.35 and must also contain, 
        following the statement required by section 508.35 regarding 
        rights or encumbrances subsisting, a statement in substantially 
        the following form:  "This certificate of title is also a CPT as 
        to the lands described herein included in the examiner's 
        directive shown by memorial on this certificate of title and 
        those lands are subject to any claims that may be made pursuant 
        to section 508A.17 within five years from the date of the first 
        CPT." 
           Subd. 2.  [APPLICABLE STATUTE.] Chapter 508 applies to the 
        lands in the combined certificate of title which are registered 
        under that chapter or which have been integrated pursuant to 
        section 508A.85, subdivision 5.  This chapter applies to the 
        lands in the combined certificate of title which are registered 
        pursuant to this chapter and which have not been integrated 
        pursuant to section 508A.85, subdivision 5. 
           Sec. 26.  Minnesota Statutes 2000, 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), (14), and (16) 
        (5), (11), (13), (14), and (17), 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), and (16), (3), (5), (11), (13), 
        (14), and (17), 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 a first CPT, including issuing a copy 
        of it, $30; 
           (3) for registering each instrument transferring the fee 
        simple title for which a new CPT is issued and for the 
        registration of the new CPT, including a copy of it, $30; 
           (4) for issuance of a CECT pursuant to section 508A.351, 
        $15; 
           (5) for the entry of each memorial on a CPT, $15; 
           (5) (6) for issuing each residue CPT, $20; 
           (6) (7) for exchange CPTs or combined certificates of 
        title, $10 for each CPT and certificate of title canceled and 
        $10 for each new CPT or combined certificate of title issued; 
           (7) (8) for each CPT showing condition of the register, 
        $10; 
           (8) (9) 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) (10) 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) (11) for filing two copies of any plat in the office 
        of the registrar, $30; 
           (11) (12) for any other service under sections 508A.01 to 
        508A.85, the fee the court shall determine; 
           (12) (13) for filing an amendment to 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; 
           (13) (14) 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) and issuing a CECT if 
        required, $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; 
           (14) (15) for a copy of a condominium floor plan filed in 
        accordance with chapter 515, a copy of a condominium plat filed 
        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; 
           (15) (16) 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; 
           (16) (17) for filing a registered land survey in triplicate 
        in accordance with section 508A.47, subdivision 4, $30; and 
           (17) (18) for furnishing a certified copy of a registered 
        land survey in accordance with section 508A.47, subdivision 4, 
        $10. 
           Sec. 27.  Minnesota Statutes 2000, 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 certificate of title was issued 
        for the land involved.  The memorial of the examiner's directive 
        on the CPT pursuant to section 508A.351 508A.22 shall not be 
        removed without an order of the district court.  
           Sec. 28.  Minnesota Statutes 2000, 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 in accordance with 
        section 508.351 or 508A.351. 
           (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 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 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. 29.  Minnesota Statutes 2000, section 515B.3-104, is 
        amended to read: 
           515B.3-104 [TRANSFER OF SPECIAL DECLARANT RIGHTS.] 
           (a) A special declarant right created or reserved under 
        this chapter may be voluntarily transferred only by a separate 
        instrument evidencing the transfer recorded in every county in 
        which any part of the common interest community is located.  The 
        separate instrument shall be recorded against all units in the 
        common interest community, or in the case of a cooperative, 
        against the real estate owned by the cooperative, or in the case 
        of a condominium on registered land, the instrument must be 
        filed pursuant to section 508.351, subdivision 3, or 508A.351, 
        subdivision 3.  The instrument may provide for the conveyance of 
        less than all of the special declarant rights, and is not 
        effective unless executed by the transferor and transferee.  A 
        deed in lieu of foreclosure, or other conveyance arising out of 
        a foreclosure or cancellation, shall not be deemed a voluntary 
        transfer within the meaning of this section. 
           (b) Upon the voluntary transfer of any special declarant 
        right, the liability of a transferor declarant is as follows: 
           (1) A transferor is not relieved of any obligation or 
        liability arising before the transfer and remains liable for 
        warranty obligations imposed on the transferor by this chapter.  
        Lack of privity does not deprive any unit owner of standing to 
        maintain an action to enforce any obligation of the transferor. 
           (2) If a successor to any special declarant right is an 
        affiliate of a declarant, the transferor is jointly and 
        severally liable with the successor for any obligations or 
        liabilities of the successor relating to the common interest 
        community. 
           (3) If a transferor retains any special declarant rights, 
        but transfers other special declarant rights to a successor who 
        is not an affiliate of the declarant, the transferor is liable 
        for any obligations or liabilities imposed on a declarant by 
        this chapter or by the declaration relating to the retained 
        special declarant rights and arising before or after the 
        transfer. 
           (4) A transferor has no liability for any act or omission 
        or any breach of a contractual or warranty obligation arising 
        from the exercise of a special declarant right by a successor 
        declarant who is not an affiliate of the transferor. 
           (c) Upon the voluntary transfer of any special declarant 
        right, the liability of a successor declarant is as follows: 
           (1) A successor to any special declarant right who is an 
        affiliate of a declarant is subject to all obligations and 
        liabilities imposed on the transferor by this chapter or by the 
        declaration. 
           (2) A successor to any special declarant right who is not 
        an affiliate of a declarant is subject to all obligations and 
        liabilities imposed by this chapter or the declaration, except:  
        (i) misrepresentations by any previous declarant; (ii) warranty 
        obligations on improvements made by any previous declarant, or 
        made before the common interest community was created; (iii) 
        breach of any fiduciary obligation by any previous declarant or 
        the declarant's appointees to the board; (iv) any liability or 
        obligation imposed on the transferor as a result of the 
        transferor's acts or omissions after the transfer; and (v) any 
        liability arising out of a special declarant right which was not 
        transferred as provided in subsection (a). 
           (d) In case of foreclosure of a mortgage or cancellation of 
        a contract for deed or other security interest (or conveyance in 
        lieu thereof), sale by a trustee under an agreement creating a 
        security interest, tax sale, judicial sale, or sale under 
        bankruptcy code or receivership proceedings, of any units or 
        additional real estate, or interest therein, owned by a 
        declarant, a person acquiring title to the property or interests 
        succeeds to all special declarant rights related to the property 
        or interests held by that declarant and acquired by it unless (i)
        the mortgage instrument or other instrument creating the 
        security interest, (ii) the instrument conveying title or (iii) 
        a separate instrument signed by the person and recorded within 
        60 days after the person acquires title to the property or 
        interests, provides for transfer of less than all special 
        declarant rights.  The separate instrument need be recorded only 
        against the title to the units or interests other than those 
        being acquired under this subsection, or in the case of a 
        cooperative, against the real estate owned by the cooperative.  
        The declarant shall cease to have or exercise any special 
        declarant rights which are transferred.  If the person has 
        limited the transfer of certain special declarant rights as 
        provided in this subsection, then it and its successor's 
        liability shall be limited, as follows: 
           (1) If the person or its successor limits its rights and 
        liabilities only to maintain models, sales office and signs, and 
        if that party is not an affiliate of a declarant, it is not 
        subject to any liability or obligations as a declarant, except 
        the obligation to provide a disclosure statement and any 
        liability arising from that obligation, and it may not exercise 
        any other special declarant rights. 
           (2) If the person or its successor is not an affiliate of a 
        declarant, it may declare its intention in a recorded instrument 
        as provided in subsection (a) to acquire all special declarant 
        rights and hold those rights solely for transfer to another 
        person.  Thereafter, until the special declarant rights are 
        transferred to a person acquiring title to any unit owned by the 
        successor, or until a separate instrument is recorded permitting 
        exercise of all of those rights, that successor may not exercise 
        any of those rights other than the right to control the board of 
        directors in accordance with the provisions of section 
        515B.3-103 for the duration of any period of declarant control.  
        So long as any successor may not exercise its special declarant 
        rights under this subsection, it is not subject to any liability 
        or obligation as a declarant other than liability for its acts 
        and omissions under section 515B.3-103. 
           (e) Any attempted exercise by a purported successor to a 
        special declarant right which is not transferred as provided in 
        this section is void, and any purported successor attempting to 
        exercise that right shall be liable for any damages arising out 
        of its actions. 
           (f) Nothing in this section shall subject any successor to 
        a special declarant right to any claims against or other 
        obligations of a transferor declarant, other than claims and 
        obligations arising under this chapter, or the declaration or 
        bylaws. 
           Sec. 30.  Minnesota Statutes 2000, section 515B.3-117, is 
        amended to read: 
           515B.3-117 [OTHER LIENS.] 
           (a) Except in a cooperative and except as otherwise 
        provided in this chapter or in a security instrument, an 
        individual unit owner may have the unit owner's unit released 
        from a lien if the unit owner pays the lienholder the portion of 
        the amount which the lien secures that is attributable to the 
        unit.  Upon the receipt of payment, the lienholder shall 
        promptly deliver to the unit owner a recordable partial 
        satisfaction and release of lien releasing the unit from the 
        lien.  The release shall be deemed to include a release of any 
        rights in the common elements appurtenant to the unit.  The 
        portion of the amount which a lien secures that is attributable 
        to the unit shall be equal to the total amount which the lien 
        secures multiplied by a percentage calculated by dividing the 
        common expense liability attributable to the unit by the common 
        expense liability attributable to all units against which the 
        lien has been recorded, or in the case of a lien under 
        subsection (b), the units against which the lien is permitted or 
        required to be recorded.  At the request of a lien claimant or 
        unit owners, the association shall provide a written statement 
        of the percentage of common expense liability attributable to 
        all units.  After a unit owner's payment pursuant to this 
        section, the association may not assess the unit for any common 
        expense incurred thereafter in connection with the satisfaction 
        or defense against the lien. 
           (b) Labor performed or materials furnished for the 
        improvement of a unit shall be the basis for the recording of a 
        lien against that unit pursuant to the provisions of chapter 514 
        but shall not be the basis for the recording of a lien against 
        the common elements.  Labor performed or materials furnished for 
        the improvement of common elements, if duly authorized by the 
        association, shall be deemed to be performed or furnished with 
        the express consent of each unit owner, and shall be perfected 
        by recording a lien against all the units in the common interest 
        community pursuant to the provisions of chapter 514, but shall 
        not be the basis for the recording of a lien against the common 
        elements except in the case of a condominium on registered land, 
        in which case a lien must be filed pursuant to section 508.351, 
        subdivision 3, or 508A.351, subdivision 3.  Where a lien is 
        recorded against the units for labor performed or material 
        furnished for the improvement of common elements, the 
        association shall be deemed to be the authorized agent of the 
        unit owners for purposes of receiving the notices required under 
        sections 514.011 and 514.08, subdivision 1, clause (2). 
           (c) A security interest in a cooperative whose unit owners' 
        interests in the units are personal property shall be perfected 
        by recording a financing statement in the UCC filing section of 
        the office of the recording officer for the county in which the 
        unit is located.  In any disposition by a secured party 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, subject to the exceptions and requirements set forth in 
        section 515B.3-116(h)(3), and except that the unit owner has the 
        right to reinstate the debt owing to the secured party by paying 
        to the secured party, prior to the effective date of the 
        disposition or retention, the amount which would be required to 
        reinstate the debt under section 580.30 if the unit were wholly 
        real estate. 
           Sec. 31.  Minnesota Statutes 2000, section 541.023, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMENCEMENT.] As against a claim of title 
        based upon a source of title, which source has then been of 
        record at least 40 years, no action affecting the possession or 
        title of any real estate shall be commenced by a person, 
        partnership, corporation, other legal entity, state, or any 
        political division thereof, after January 1, 1948, to enforce 
        any right, claim, interest, incumbrance, or lien founded upon 
        any instrument, event or transaction which was executed or 
        occurred more than 40 years prior to the commencement of such 
        action, unless within 40 years after such execution or 
        occurrence there has been recorded in the office of the county 
        recorder or filed in the office of the registrar of titles in 
        the county in which the real estate affected is situated, a 
        notice sworn to by the claimant or the claimant's agent or 
        attorney setting forth the name of the claimant, a description 
        of the real estate affected and of the instrument, event or 
        transaction on which such claim is founded, and stating whether 
        the right, claim, interest, incumbrance, or lien is mature or 
        immature.  If such notice relates to vested or contingent rights 
        claimed under a condition subsequent or restriction it shall 
        affirmatively show why such condition or restriction is not, or 
        has not become nominal so that it may be disregarded under the 
        provisions of Minnesota Statutes 1945, section 500.20, 
        subdivision 1. 
           Sec. 32.  Minnesota Statutes 2000, section 541.023, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION.] (a) This section shall apply to 
        every right, claim, interest, incumbrance, or lien founded by 
        any instrument, event, or transaction that is at least 40 years 
        old at the date hereof, or which will be 40 years old prior to 
        January 1, 1948, except those under which the claimant 
        thereunder shall file a notice as herein provided prior to 
        January 1, 1948. 
           (b) This section applies to repurchase options or other 
        rights of repurchase that encumber an interest in land based 
        upon an instrument other than a deed of conveyance granted by a 
        governmental body, agency, or subdivision, unless within 40 
        years of the recording or filing of the instrument a notice is 
        recorded or filed under subdivision 1.  This paragraph does not 
        revive repurchase options or rights of repurchase barred by 
        subdivision 1. 
           (c) This section does not apply to actions to enforce 
        rights, claims, interests, encumbrances, or liens arising out of 
        private covenants, conditions, or restrictions to which section 
        500.20, subdivision 2a, or successor statutes do not apply. 
           Sec. 33.  Minnesota Statutes 2000, section 541.023, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [REGISTERED PROPERTY NOT AFFECTED.] (a) Except 
        as provided in paragraph (b), this section does not apply to 
        real property while it remains registered according to chapter 
        508 or 508A. 
           (b) This subdivision does not affect an action or 
        proceeding involving the validity of a claim of title based upon 
        a source of title which has been of record at least 40 years if: 
           (i) the action or proceeding is pending on the effective 
        date of this subdivision or is commenced before February 1, 
        2002; and 
           (ii) a notice of the pendency of the action or proceeding 
        is recorded or filed before February 1, 2002, in the office of 
        the registrar of titles of the county in which the real property 
        affected by the action or proceeding is located. 
           Sec. 34.  Minnesota Statutes 2000, section 541.023, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NOTICES, FILING OR RECORDING; FEE.] County 
        recorders and registrars of titles are hereby directed to accept 
        for recording or filing notices conforming with the provisions 
        hereof, and to charge therefor fees corresponding with the fees 
        charged for filing notices of lis pendens of similar length.  
        Such notices may be discharged in the same manner as notices of 
        lis pendens, and, when so discharged, shall, together with all 
        information included therein, cease to constitute either actual 
        or constructive notice. 
           Sec. 35.  Minnesota Statutes 2000, section 541.023, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LIMITATIONS; CERTAIN TITLES NOT AFFECTED.] This 
        section shall not affect any rights of the federal government; 
        nor increase the effect as notice, actual or constructive, of 
        any instrument now of record; nor bar the rights of any person, 
        partnership or corporation in possession of real estate.  This 
        section shall not impair the record title or record interest, or 
        title obtained by or through any congressional or legislative 
        grant, of any railroad corporation or other public service 
        corporation or any trustee or receiver thereof or of any 
        educational or religious corporation in any real estate by 
        reason of any failure to file or record further evidence of such 
        title or interest even though the record thereof is new or 
        hereafter more than 40 years old; nor shall this section require 
        the filing of any notice as provided for in this act as to any 
        undischarged mortgage or deed of trust executed by any such 
        corporation or any trustee or receiver thereof or to any claim 
        or action founded upon any such undischarged mortgage or deed of 
        trust.  The exceptions of this subdivision shall not include (a) 
        reservations or exceptions of land for right of way or other 
        railroad purposes contained in deeds of conveyance made by a 
        railroad company or by trustees or receivers thereof, unless 
        said reserved or excepted land shall have been put to railroad 
        use within 40 years after the date of said deeds of conveyance, 
        (b) nor any rights under any conditions subsequent or 
        restrictions contained in any such deeds of conveyance.  This 
        act shall not affect any action or proceeding which is now or on 
        January 1, 1948, shall be pending, for the determination of 
        validity of the title to real estate.  
           Sec. 36.  Minnesota Statutes 2000, section 541.023, 
        subdivision 7, is amended to read: 
           Subd. 7.  [SOURCE OF TITLE.] For the purposes of this 
        section, the words "source of title" as used in subdivision 1 
        hereof shall mean any deed, judgment, decree, sheriff's 
        certificate, or other instrument which transfers or confirms, or 
        purports to transfer or confirm, a fee simple title to real 
        estate, including any such instrument which purports to 
        transfer, or to confirm the transfer of a fee simple title from 
        a person who was not the record owner of the real estate.  
        However, any such instrument which purports to transfer, or to 
        confirm the transfer of, a fee simple title from a person who 
        was not the record owner of the real estate to the grantee or 
        transferee named in such instrument shall be deemed a source of 
        title "of record at least 40 years" within the meaning of 
        subdivision 1 only if, during the period of 40 years after it 
        was recorded, the following two conditions are fulfilled:  (1) 
        another instrument was recorded which purports to transfer a fee 
        simple title from said grantee or transferee to another person 
        and (2) no instrument was recorded which purports to be or 
        confirm a transfer of any interest in the real estate by or from 
        whoever was the record owner in fee simple immediately before 
        the commencement of said period of 40 years.  The purpose of the 
        next preceding sentence is to limit the effect of erroneous 
        descriptions or accidental conveyances.  Insofar as this 
        subdivision 7 may bar any claim not otherwise barred or 
        extinguished by this section or by some other statute, it shall 
        not be effective until June 1, 1960, and it shall not then apply 
        to any such claim with respect to which a notice has been filed 
        under the provisions of this section prior to that date.  This 
        subdivision 7 shall not affect any action or proceeding which is 
        now, or on or before June 1, 1960, shall be, pending in any 
        court.  
           Sec. 37.  [REPEALER.] 
           Minnesota Statutes 2000, sections 508.71, subdivision 7; 
        508A.22, subdivision 2; 508A.27; and 508A.351, subdivision 1, 
        are repealed. 
           Sec. 38.  [INSTRUCTION TO REVISOR.] 
           (a) The revisor of statutes shall change the headnote for 
        Minnesota Statutes, section 508.51, to read "VOLUNTARY 
        INSTRUMENT." 
           (b) The revisor of statutes shall change the headnote for 
        Minnesota Statutes, section 508.421, to read "EXCHANGE 
        CERTIFICATE." 
           (c) The revisor of statutes shall change the headnote for 
        Minnesota Statutes, section 508A.22, to read "EXAMINER'S 
        DIRECTIVE; FEES." 
           (d) The revisor of statutes shall change the headnote for 
        Minnesota Statutes, section 508A.351, to read "CONDOMINIUM 
        CERTIFICATE." 
           Sec. 39.  [EFFECTIVE DATE.] 
           (a) Section 1 is effective the day following final 
        enactment and applies to all easements, conditions, 
        restrictions, and other servitudes created before, on, or after 
        the effective date. 
           (b) Section 1 does not affect an action or proceeding 
        involving the validity of an easement, condition, restriction, 
        or other servitude if: 
           (1) the action or proceeding is pending as of the effective 
        date of section 1, or is commenced before February 1, 2002; and 
           (2) a notice of the pendency of the action or proceeding is 
        recorded or filed before February 1, 2002, in the office of the 
        county recorder or registrar of titles of the county in which 
        the property affected by the action or proceeding is located. 
           Presented to the governor April 23, 2001 
           Signed by the governor April 26, 2001, 10:25 a.m.