1.1                                        A bill for an act&#10;1.2     relating to property; modifying certain tax liens upon land; providing for &#10;1.3     certificates of custodianship; modifying mechanic's lien provisions; modifying &#10;1.4     certain probate and trust provisions and clarifying the administrative powers &#10;1.5     of personal representatives to sell, mortgage, or lease property of a decedent; &#10;1.6     making clarifying, technical, and conforming changes to the Minnesota &#10;1.7     Common Interest Ownership Act; providing for summary real estate judgments; &#10;1.8     providing for filing and status of foreign judgments;amending Minnesota &#10;1.9     Statutes 2004, sections 272.44; 272.45; 514.10; 518.191, subdivisions 2, 4, by &#10;1.10    adding a subdivision; 524.3-301; 524.3-715; 524.3-803; Minnesota Statutes &#10;1.11    2005 Supplement, sections 253B.23, subdivision 2; 515B.1-102; 515B.1-106; &#10;1.12    515B.2-101; 515B.2-110; 515B.2-112; 515B.2-121; 515B.3-115; 515B.3-117; &#10;1.13    515B.4-101; 515B.4-102; 548.27; proposing coding for new law in Minnesota &#10;1.14    Statutes, chapter 501B.&#10;1.15    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:&#10;&#10;<a id="go.0.1.0"></a>1.16        Section 1. Minnesota Statutes 2005 Supplement, section 253B.23, subdivision 2, is &#10;1.17    amended to read:&#10;1.18        Subd. 2. <b>Legal results of commitment status.</b> (a) Except as otherwise provided &#10;1.19    in this chapter and in sections 246.15 and 246.16, no person by reason of commitment &#10;1.20    or treatment pursuant to this chapter shall be deprived of any legal right, including but &#10;1.21    not limited to the right to dispose of property, sue and be sued, execute instruments, &#10;1.22    make purchases, enter into contractual relationships, vote, and hold a driver's license. &#10;1.23    Commitment or treatment of any patient pursuant to this chapter is not a judicial &#10;1.24    determination of legal incompetency except to the extent provided in section 253B.03, &#10;1.25    subdivision 6.&#10;1.26    (b) Proceedings for determination of legal incompetency and the appointment of a &#10;1.27    guardian for a person subject to commitment under this chapter may be commenced before, &#10;1.28    during, or after commitment proceedings have been instituted and may be conducted &#10;2.1     jointly with the commitment proceedings. The court shall notify the head of the treatment &#10;2.2     facility to which the patient is committed of a finding that the patient is incompetent.&#10;2.3     (c) Where the person to be committed is a minor or owns property of value and it &#10;2.4     appears to the court that the person is not competent to manage a personal estate, the court &#10;2.5     shall appoint a general <del>or special guardian for the person or a</del> conservator of the person's &#10;2.6     estate as provided by law.&#10;&#10;<a id="go.0.2.0"></a>2.7         Sec. 2. Minnesota Statutes 2004, section 272.44, is amended to read:&#10;2.8     <b>272.44 TAXES PAID BY LIEN HOLDERS ARE </b><del><b>AN ADDITIONAL</b></del><ins><b> ADDED </b></ins>&#10;2.9     <ins><b>TO</b></ins><b> LIEN.</b>&#10;2.10    Any person who has a lien, by mortgage or otherwise, upon any land upon which the &#10;2.11    taxes have not been paid<ins> when they came due</ins>, may pay such taxes before or after the same &#10;2.12    become delinquent, and the interest, penalty, and costs, if any, thereon; and the money so &#10;2.13    paid shall be <del>an additional</del><ins> added to the</ins> lien on such land; and, with the interest thereon &#10;2.14    at the rate specified in the mortgage <del>or</del><ins>,</ins> other instrument, <ins>or by law, </ins>shall be collectible &#10;2.15    with, as a part of, and in the same manner as the amount secured by the original lien. No &#10;2.16    interest shall accrue on the taxes so paid by such <del>mortgagee</del><ins> lienholder</ins> prior to June first &#10;2.17    of the year in which such taxes become due and payable.&#10;&#10;<a id="go.0.3.0"></a>2.18        Sec. 3. Minnesota Statutes 2004, section 272.45, is amended to read:&#10;2.19    <b>272.45 TAXES PAID BY TENANT</b><ins><b>, OCCUPANT,</b></ins><b> OR OTHER PERSON </b>&#10;2.20    <b>BECOME LIEN, UPON NOTICE FILED WITH COUNTY RECORDER</b><ins><b> OR </b></ins>&#10;2.21    <ins><b>REGISTRAR OF TITLES</b></ins><b>.</b>&#10;2.22    When any <ins>past due or delinquent </ins>tax on land is paid by <del>or collected from</del> any &#10;2.23    occupant<del> or</del><ins>,</ins> tenant, or <del>any other</del> person<ins> with an interest in the land other than a lien, or a </ins>&#10;2.24    <ins>person acting on that person's behalf</ins>, which, by agreement or otherwise, ought to have &#10;2.25    been paid by the owner, lessor, or other party in interest, such occupant, tenant, or <del>other</del> &#10;2.26    person may recover by action the amount which such owner, lessor, or party in interest &#10;2.27    ought to have paid, with interest thereon at the rate of 12 percent per annum, or may retain &#10;2.28    the same from any rent due or accruing from the person to such owner or lessor for land on &#10;2.29    which such tax is so paid. <del>Any such</del><ins> A</ins> person making <del>such</del><ins> a</ins> payment <ins>under this section </ins>&#10;2.30    may file with the county recorder <ins>or registrar of titles </ins>of the proper county a notice stating &#10;2.31    the amount and date of such payment, and <del>whether paid as occupant, tenant, or otherwise</del><ins> </ins>&#10;2.32    <ins>stating the interest claimed in the land</ins>, with a description of the land against which the &#10;2.33    taxes were charged; and the same shall thereupon be a lien upon such land in favor of the &#10;2.34    person paying the same until the same is paid. The county recorder shall record such &#10;3.1     notice in the <del>book of miscellaneous records</del><ins> indices maintained by the county recorder</ins>. &#10;3.2     <ins>The registrar of titles shall record the notice on the certificate of title for the land. </ins>Upon &#10;3.3     the payment of any such lien, the person filing such notice shall satisfy the same of record.&#10;&#10;<a id="go.0.4.0"></a>3.4         Sec. 4. <ins><b>[501B.561] CERTIFICATE OF CUSTODIANSHIP.</b></ins>&#10;3.5         <ins>Subdivision 1.</ins> <ins><b>Contents of certificate.</b></ins> <ins>(a) A custodian or the owner of property </ins>&#10;3.6     <ins>held in a custodianship, at any time after execution or creation of a custodianship </ins>&#10;3.7     <ins>instrument, may execute a certificate of custodianship that sets forth less than all of </ins>&#10;3.8     <ins>the provisions of the custodial instrument and any amendments to the instrument.  The </ins>&#10;3.9     <ins>certificate of custodianship may be used for purposes of selling, conveying, pledging, </ins>&#10;3.10    <ins>mortgaging, leasing, or transferring title to any interest in real or personal property.  The </ins>&#10;3.11    <ins>certificate of custodianship must include:</ins>&#10;3.12    <ins>(1) the name of the custodianship, if one is given;</ins>&#10;3.13    <ins>(2) the date of the custodianship instrument;</ins>&#10;3.14    <ins>(3) the name of each owner of property held in the custodianship;</ins>&#10;3.15    <ins>(4) the name of each original custodian;</ins>&#10;3.16    <ins>(5) the name and address of each custodian empowered to act under the custodianship </ins>&#10;3.17    <ins>instrument at the time of execution of the certificate;</ins>&#10;3.18    <ins>(6) the following statement:  "The custodians are authorized by the instrument to </ins>&#10;3.19    <ins>sell, convey, pledge, mortgage, lease, or transfer title to any interest in real or personal </ins>&#10;3.20    <ins>property, except as limited by the following:  (if none, so indicate)";</ins>&#10;3.21    <ins>(7) any other custodianship provisions the custodians or owners of property held </ins>&#10;3.22    <ins>in the custodianship include; and </ins>&#10;3.23    <ins>(8) a statement as to whether the custodianship instrument has terminated or been </ins>&#10;3.24    <ins>revoked.</ins>&#10;3.25    <ins>(b) The certificate of custodianship must be upon the representation of the custodians </ins>&#10;3.26    <ins>or the owners of property held in the custodianship that the statements contained in the </ins>&#10;3.27    <ins>certificate of custodianship are true and correct and that there are no other provisions </ins>&#10;3.28    <ins>in the custodianship instrument or amendments to it that limit the powers of the </ins>&#10;3.29    <ins>custodianship to sell, convey, pledge, mortgage, lease, or transfer title to interests in real </ins>&#10;3.30    <ins>or personal property.  The signature of the custodians or the owners of property held in </ins>&#10;3.31    <ins>the custodianship must be under oath before a notary public or other official authorized </ins>&#10;3.32    <ins>to administer oaths.</ins>&#10;3.33        <ins>Subd. 2.</ins> <ins><b>Effect.</b></ins> <ins>A certificate of custodianship executed under subdivision 1 may </ins>&#10;3.34    <ins>be recorded in the office of the county recorder for any county, or filed with the office </ins>&#10;3.35    <ins>of the registrar of titles with respect to registered land described in the certificate of </ins>&#10;4.1     <ins>custodianship or any attachment to it.  When it is recorded or filed in a county where real </ins>&#10;4.2     <ins>property is situated, or in the case of personal property, when it is presented to a third party, </ins>&#10;4.3     <ins>the certificate of custodianship serves to document the existence of the custodianship, the </ins>&#10;4.4     <ins>identity of the custodians, the powers of the custodians and any limitations on those </ins>&#10;4.5     <ins>powers, and other matters the certificate of custodianship sets out, as though the full </ins>&#10;4.6     <ins>custodianship instrument had been recorded, filed, or presented.  Until amended or </ins>&#10;4.7     <ins>revoked under subdivision 3, or until the full custodianship instrument is recorded, filed, </ins>&#10;4.8     <ins>or presented, a certificate of custodianship is prima facie proof as to the matters contained </ins>&#10;4.9     <ins>in it, and any party may rely upon the continued effectiveness of the certificate.</ins>&#10;4.10        <ins>Subd. 3.</ins> <ins><b>Amendment or revocation.</b></ins> <ins>(a) Amendment or revocation of a certificate </ins>&#10;4.11    <ins>of custodianship may be made only by a written instrument executed by a custodian or an </ins>&#10;4.12    <ins>owner of property held in the custodianship.  Amendment or revocation of a certificate </ins>&#10;4.13    <ins>of custodianship is not effective as to a party unless that party has actual notice of the </ins>&#10;4.14    <ins>amendment or revocation.</ins>&#10;4.15    <ins>(b) For purposes of this subdivision, "actual notice" means that a written instrument </ins>&#10;4.16    <ins>of amendment or revocation has been received by the party or, in the case of real property, </ins>&#10;4.17    <ins>that either a written instrument of amendment or revocation has been received by the party </ins>&#10;4.18    <ins>or that a written instrument of amendment or revocation containing the legal description </ins>&#10;4.19    <ins>of the real property has been recorded in the office of the county recorder or filed in the </ins>&#10;4.20    <ins>office of the registrar of titles where the real property is situated.</ins>&#10;4.21        <ins>Subd. 4.</ins> <ins><b>Application.</b></ins> <ins>(a) Subdivisions 1 to 3 are effective August 1, 2006, but </ins>&#10;4.22    <ins>apply to custodianship instruments whenever created or executed.</ins>&#10;4.23    <ins>(b) Subdivisions 1 to 3 apply only to custodianships established under a federal </ins>&#10;4.24    <ins>law or under a statute of this or any other state.  Subdivisions 1 to 3 do not apply to </ins>&#10;4.25    <ins>custodianships governed by chapter 527 or by the similar laws of another state.</ins>&#10;&#10;<a id="go.0.5.0"></a>4.26        Sec. 5. <ins><b>[501B.571] AFFIDAVIT OF CUSTODIAN IN REAL PROPERTY </b></ins>&#10;4.27    <ins><b>TRANSACTIONS.</b></ins>&#10;4.28        <ins>Subdivision 1.</ins> <ins><b>Form of affidavit for custodianship.</b></ins> <ins>An affidavit of a custodian </ins>&#10;4.29    <ins>or of custodians of a custodianship in support of a real property transaction may be </ins>&#10;4.30    <ins>substantially in the following form:</ins>&#10;<rs_table>4.31    <ins>STATE OF </ins>                            &#10;4.32    <ins>MINNESOTA )</ins>              <ins>AFFIDAVIT OF CUSTODIAN</ins>&#10;4.33           <ins> )</ins><ins> ss.</ins>                        &#10;4.34    <ins>COUNTY OF )</ins>                            &#10;</rs_table>5.1     <ins>.........................., being first duly sworn on oath says that:</ins>&#10;5.2     <ins>1.  Affiant is the custodian (one of the custodians) named in that certain Certificate of </ins>&#10;5.3     <ins>Custodianship (or Custodianship Instrument) </ins>&#10;5.4     <ins>filed for record ......., ...., as Document No. ..... (or in Book ..... of ............, Page </ins>&#10;5.5     <ins>......) in the Office of the (County Recorder/Registrar of Titles) of ........... County, </ins>&#10;5.6     <ins>Minnesota,</ins>&#10;5.7     <ins>OR </ins>&#10;5.8     <ins>to which this Affidavit is attached,</ins>&#10;5.9     <ins>executed by Affiant or another custodian or by the owner of the property that is held </ins>&#10;5.10    <ins>in the custodianship described in the Certificate of Custodianship (or set forth in </ins>&#10;5.11    <ins>the Custodianship Instrument), and which relates to real property in .......... County, </ins>&#10;5.12    <ins>Minnesota, legally described as follows:</ins>&#10;5.13    <ins>.......................................................... ............................................................... </ins>&#10;5.14    <ins>............................................................... ...............................................................</ins>&#10;5.15    <ins>(If more space is needed, continue on back or on attachment.) </ins>&#10;5.16    <ins>2.  The name(s) and address(es) of the custodian(s) empowered by the Custodian </ins>&#10;5.17    <ins>Instrument to act at the time of the execution of this Affidavit are as follows:</ins>&#10;5.18    <ins>......................................................... .............................................................. </ins>&#10;5.19    <ins>..............................................................</ins>&#10;5.20    <ins>3.  The custodian(s) who have executed that certain instrument relating to the real </ins>&#10;5.21    <ins>property described above between ........................, as custodian(s) and ..........................., </ins>&#10;5.22    <ins>dated .........., ....:</ins>&#10;5.23    <ins>(i) are empowered by the provisions of the custodianship to sell, convey, pledge, </ins>&#10;5.24    <ins>mortgage, lease, or transfer title to any interest in real property held in custodianship; and </ins>&#10;5.25    <ins>(ii) are the requisite number of custodians required by the provisions of the </ins>&#10;5.26    <ins>custodianship to execute and deliver such an instrument.</ins>&#10;5.27    <ins>4.  The custodianship has not terminated and has not been revoked.</ins>&#10;5.28    <ins>- OR -</ins>&#10;5.29    <ins>4.  The custodianship has terminated (or has been revoked).  The execution and </ins>&#10;5.30    <ins>delivery of the instrument described in paragraph 3 has been made pursuant to the </ins>&#10;5.31    <ins>provisions of the custodianship.</ins>&#10;5.32    <ins>5.  There has been no amendment to the custodianship which limits the power of </ins>&#10;5.33    <ins>custodian(s) to execute and deliver the instrument described in paragraph 3.</ins>&#10;5.34    <ins>6.  The custodianship is not supervised by any court.</ins>&#10;5.35    <ins>- OR -</ins>&#10;6.1     <ins>6.  The custodianship is supervised by the ............ Court of .............. County, </ins>&#10;6.2     <ins>................  All necessary approval has been obtained from the court for the custodian(s) to </ins>&#10;6.3     <ins>execute and deliver the instrument described in paragraph 3.</ins>&#10;6.4     <ins>7.  Affiant does not have actual knowledge of any facts indicating that the </ins>&#10;6.5     <ins>custodianship is invalid.</ins>&#10;<rs_table>6.6                 <ins>.............................  </ins>&#10;6.7     <ins>Subscribed and sworn to before me </ins><ins>   , Affiant </ins>&#10;6.8     <ins> this .... day of ........., .....</ins>            &#10;6.9                 <ins>....................................................</ins>&#10;6.10    <ins>Notary Stamp or Seal</ins><ins> Signature of Notary Public or </ins>&#10;6.11                <ins>Other Official</ins>&#10;6.12    <ins>This instrument was drafted by:</ins>            &#10;6.13    <ins>.....................................................</ins>            &#10;6.14    <ins>.....................................................</ins>            &#10;</rs_table>6.15        <ins>Subd. 2.</ins> <ins><b>Effect.</b></ins> <ins>An affidavit by the custodian or custodians under subdivision 1 </ins>&#10;6.16    <ins>is proof that:</ins>&#10;6.17    <ins>(1) the custodianship described in the affidavit is a valid custodianship;</ins>&#10;6.18    <ins>(2) either the custodianship has not terminated or been revoked or, if the </ins>&#10;6.19    <ins>custodianship has terminated or been revoked, the conveyance described in the affidavit </ins>&#10;6.20    <ins>is made pursuant to the provisions of the custodianship;</ins>&#10;6.21    <ins>(3) the powers granted the custodian or custodians extend to the real property </ins>&#10;6.22    <ins>described in the affidavit or attachment to the affidavit;</ins>&#10;6.23    <ins>(4) no amendment to the custodianship has been made limiting the power of the </ins>&#10;6.24    <ins>custodian or custodians to sell, convey, pledge, mortgage, lease, or transfer title to the real </ins>&#10;6.25    <ins>property described in the affidavit or attachment to the affidavit, if any;</ins>&#10;6.26    <ins>(5) the requisite number of custodians have executed and delivered the instrument of </ins>&#10;6.27    <ins>conveyance described in the affidavit; and </ins>&#10;6.28    <ins>(6) any necessary court approval of the transaction has been obtained.</ins>&#10;6.29    <ins>The proof is conclusive as to any party relying on the affidavit, except a party dealing </ins>&#10;6.30    <ins>directly with the custodian or custodians who has actual knowledge of facts to the contrary.</ins>&#10;6.31        <ins>Subd. 3.</ins> <ins><b>Recording or filing.</b></ins> <ins>An Affidavit of Custodian or Custodians under </ins>&#10;6.32    <ins>subdivision 1 may be recorded in the office of the county recorder for any county, or </ins>&#10;6.33    <ins>filed with the office of the registrar of titles for any county with respect to registered </ins>&#10;6.34    <ins>land described in the affidavit, or in the Certificate of Custodianship or Custodianship </ins>&#10;7.1     <ins>Instrument referred to in the affidavit, and may be recorded or filed as a separate </ins>&#10;7.2     <ins>document or combined with or attached to an original or certified copy of a Certificate of </ins>&#10;7.3     <ins>Custodianship or Custodianship Instrument, and recorded or filed as one document.</ins>&#10;7.4         <ins>Subd. 4.</ins> <ins><b>Application.</b></ins> <ins>(a) Subdivisions 1 to 3 are effective August 1, 2006, but </ins>&#10;7.5     <ins>apply to custodianship instruments whenever created or executed.</ins>&#10;7.6     <ins>(b) Subdivisions 1 to 3 apply only to custodianships established under a federal </ins>&#10;7.7     <ins>law or under a statute of this or any other state.  Subdivisions 1 to 3 do not apply to </ins>&#10;7.8     <ins>custodianships governed by chapter 527 or by the similar laws of another state.</ins>&#10;&#10;<a id="go.0.6.0"></a>7.9         Sec. 6. Minnesota Statutes 2004, section 514.10, is amended to read:&#10;7.10    <b>514.10 FORECLOSURE OF LIENS.</b>&#10;7.11    Such liens may be enforced by action in the district court of the county in which &#10;7.12    the improved premises or some part thereof are situated, or, if claimed under section  &#10;7.13    514.04, of any county through or into which the railway or other line extends, which &#10;7.14    action shall be begun and conducted in the same manner as actions for the foreclosure of &#10;7.15    mortgages upon real estate, except as herein otherwise provided, but the owner or any &#10;7.16    person or party having an interest in or lien upon the property against which a lien has &#10;7.17    been filed under the provisions of this chapter may bring an action to remove the lien in &#10;7.18    the nature of an action to determine adverse claims and subject to all the provisions of law &#10;7.19    regarding actions to determine adverse claims. &#10;7.20    When an action has been brought, either by the lien claimant to enforce the lien or by &#10;7.21    the owner, person or party having an interest in or a lien upon the property against which a &#10;7.22    lien claim has been filed to determine adverse claims, as provided herein, application may &#10;7.23    be made at any time after such action has been commenced by any of the persons or parties &#10;7.24    above mentioned to have the property affected by any such lien, released from the lien by &#10;7.25    giving ten days' notice, or such other and shorter notice as the court may order and direct, &#10;7.26    to the lien claimant, or the lien claimant's attorney, of intention to apply to the district &#10;7.27    court for the release of such lien and of the time and place of hearing. Upon a hearing &#10;7.28    upon an application the court shall fix a sum of money <ins>or an amount of a bond from a </ins>&#10;7.29    <ins>surety listed on the United States Department of Treasury Circular 570 made payable upon </ins>&#10;7.30    <ins>the entry of judgment as provided in this section </ins>to be deposited by the applicant with the &#10;7.31    court administrator of the district court, which sum shall not be less than the aggregate &#10;7.32    amount of, (1) the amount claimed in the lien statement, (2) $18 for every $100 or fraction &#10;7.33    thereof, to cover interest, (3) the probable disbursements in an action to enforce the claim &#10;7.34    for which the lien statement was filed, (4) an amount not less than double the amount of &#10;7.35    attorneys' fees allowed upon the foreclosure under section  582.01, to cover any allowance &#10;8.1     the court may make upon the trial for costs and attorneys' fees in the action or upon &#10;8.2     appeal. Upon making a deposit in the amount so fixed in the order of court, an order shall &#10;8.3     be made by the court releasing the premises described in the statement thereof from the &#10;8.4     effect of such lien. The lien claimant shall have the same right of lien against such money &#10;8.5     <ins>or bond </ins>deposit as against the property released. The order releasing the lien may be filed &#10;8.6     in the office of the county recorder or registrar of titles, if registered land, of the county in &#10;8.7     which the lien statement is recorded or filed, and thereupon the premises affected shall be &#10;8.8     released therefrom. The court shall by the same order discharge any notice of lis pendens &#10;8.9     filed in any action in which such lien may be asserted if it appears that all mechanics' liens &#10;8.10    filed or recorded against the property covered by the lis pendens have been released. &#10;8.11    After the release of the property affected, the judgment ordered in any action either &#10;8.12    to enforce such lien or determine adverse claims and remove such lien, in the event that &#10;8.13    the lien is established, shall provide that it be paid, and it shall be paid without further &#10;8.14    proceedings out of the deposit made as provided herein. The judgment of the district &#10;8.15    court establishing a lien, unless a written notice of intention to appeal therefrom is served &#10;8.16    on the court administrator of the district court within 30 days from the entry of such &#10;8.17    judgment, shall be authority to such court administrator to pay the amount specified in &#10;8.18    such judgment to the persons entitled thereto, or their attorney of record in the action<ins> from </ins>&#10;8.19    <ins>the amount of money on deposit or to allow the claimant to collect on the bond that has </ins>&#10;8.20    <ins>been deposited</ins>. The balance of <del>deposits</del><ins> the deposit of money or bond</ins>, if any, shall be &#10;8.21    returned to the depositor. If the lien was not a valid and enforceable one, the judgment &#10;8.22    shall direct the return of the whole deposit to the depositor unless the claimant obtains &#10;8.23    judgment against such depositor personally and in such case the judgment shall be paid &#10;8.24    as hereinbefore specified.&#10;&#10;<a id="go.0.7.0"></a>8.25        Sec. 7. Minnesota Statutes 2005 Supplement, section 515B.1-102, is amended to read:&#10;8.26    <b>515B.1-102 APPLICABILITY.</b>&#10;8.27    (a) Except as provided in this section, this chapter, and not chapters 515 and 515A, &#10;8.28    applies to all common interest communities created within this state on and after June &#10;8.29    1, 1994.&#10;8.30    (b) The applicability of this chapter to common interest communities created prior to &#10;8.31    June 1, 1994, shall be as follows:&#10;8.32    (1) This chapter shall apply to condominiums created under chapter 515A with &#10;8.33    respect to events and circumstances occurring on and after June 1, 1994; provided (i) that &#10;8.34    this chapter shall not invalidate the declarations, bylaws or condominium plats of those &#10;8.35    condominiums, and (ii) that chapter 515A, and not this chapter, shall govern all rights and &#10;9.1     obligations of a declarant of a condominium created under chapter 515A, and the rights &#10;9.2     and claims of unit owners against that declarant.&#10;9.3     (2) The following sections in this chapter apply to condominiums created under &#10;9.4     chapter 515: 515B.1-104 (Variation by Agreement); 515B.1-105 (Separate Titles and &#10;9.5     Taxation); 515B.1-106 (Applicability of Local Ordinances, Regulations, and Building &#10;9.6     Codes); 515B.1-107 (Eminent Domain); 515B.1-108 (Supplemental General Principles &#10;9.7     of Law Applicable); 515B.1-109 (Construction Against Implicit Repeal); 515B.1-112 &#10;9.8     (Unconscionable Agreement or Term of Contract); 515B.1-113 (Obligation of Good &#10;9.9     Faith); 515B.1-114 (Remedies to be Liberally Administered); 515B.1-115 (Notice); &#10;9.10    515B.1-116 (Recording); 515B.2-103 (Construction and Validity of Declaration and &#10;9.11    Bylaws); 515B.2-104 (Description of Units); 515B.2-108(d) (Allocation of Interests); &#10;9.12    515B.2-109(c) (Common Elements and Limited Common Elements); 515B.2-112 &#10;9.13    (Subdivision or Conversion of Units); 515B.2-113 (Alteration of Units); 515B.2-114 &#10;9.14    (Relocation of Boundaries Between Adjoining Units); 515B.2-115 (Minor Variations &#10;9.15    in Boundaries); 515B.2-118 (Amendment of Declaration); 515B.2-119 (Termination &#10;9.16    of Common Interest Community); 515B.3-102 (Powers of Unit Owners' Association); &#10;9.17    515B.3-103(a), (b), and (g) (Board; Directors and Officers; Period of Declarant Control); &#10;9.18    515B.3-107 (Upkeep of Common Interest Community); 515B.3-108 (Meetings); &#10;9.19    515B.3-109 (Quorums); 515B.3-110 (Voting; Proxies); 515B.3-111 (Tort and Contract &#10;9.20    Liability); 515B.3-112 (Conveyance or Encumbrance of Common Elements); 515B.3-113 &#10;9.21    (Insurance); 515B.3-114 (Reserves; Surplus Funds); 515B.3-115(c), (e), (f), (g), (h), and &#10;9.22    (i) (Assessments for Common Expenses); 515B.3-116 (Lien for Assessments); 515B.3-117 &#10;9.23    (Other Liens); 515B.3-118 (Association Records); 515B.3-119 (Association as Trustee); &#10;9.24    515B.3-121 (Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108 &#10;9.25    (Purchaser's Right to Cancel Resale); and 515B.4-116 (Rights of Action; Attorney's Fees). &#10;9.26    Section 515B.1-103 (Definitions) shall apply to the extent necessary in construing any of &#10;9.27    the sections referenced in this section. Sections 515B.1-105, 515B.1-106, 515B.1-107, &#10;9.28    515B.1-116, 515B.2-103, 515B.2-104, 515B.2-118, 515B.3-102, 515B.3-110, &#10;9.29    515B.3-111, 515B.3-113, 515B.3-116, 515B.3-117, 515B.3-118, 515B.3-121, 515B.4-107, &#10;9.30    515B.4-108, and 515B.4-116 apply only with respect to events and circumstances &#10;9.31    occurring on and after June 1, 1994. All other sections referenced in this section apply &#10;9.32    only with respect to events and circumstances occurring after July 31, 1999. A section &#10;9.33    referenced in this section does not invalidate the declarations, bylaws or condominium &#10;9.34    plats of condominiums created before August 1, 1999. But all sections referenced in this &#10;9.35    section prevail over the declarations, bylaws, CIC plats, rules and regulations under them, &#10;10.1    of condominiums created before August 1, 1999, except to the extent that this chapter &#10;10.2    defers to the declarations, bylaws, CIC plats, or rules and regulations issued under them.&#10;10.3    (3) This chapter shall not apply to cooperatives and planned communities created &#10;10.4    prior to June 1, 1994; except by election pursuant to subsection (d), and except that &#10;10.5    sections 515B.1-116, subsections (a), (c), (d), (e), (f), and (h), 515B.4-107, and &#10;10.6    515B.4-108, apply to all planned communities and cooperatives regardless of when they &#10;10.7    are created, unless they are exempt under subsection (e).&#10;10.8    (c) This chapter shall not invalidate any amendment to the declaration, bylaws &#10;10.9    or condominium plat of any condominium created under chapter 515 or 515A if the &#10;10.10   amendment was recorded before June 1, 1994. Any amendment recorded on or after June &#10;10.11   1, 1994, shall be adopted in conformity with the procedures and requirements specified by &#10;10.12   those instruments and by this chapter. If the amendment grants to any person any rights, &#10;10.13   powers or privileges permitted by this chapter, all correlative obligations, liabilities and &#10;10.14   restrictions contained in this chapter shall also apply to that person.&#10;10.15   (d) Any condominium created under chapter 515, any planned community or &#10;10.16   cooperative which would be exempt from this chapter under subsection (e), or any planned &#10;10.17   community or cooperative created prior to June 1, 1994, may elect to be subject to this &#10;10.18   chapter, as follows:&#10;10.19   (1) The election shall be accomplished by recording a declaration or amended &#10;10.20   declaration, and a new or amended CIC plat where required, and by approving bylaws or &#10;10.21   amended bylaws, which conform to the requirements of this chapter, and which, in the &#10;10.22   case of amendments, are adopted in conformity with the procedures and requirements &#10;10.23   specified by the existing declaration and bylaws of the common interest community, &#10;10.24   and by any applicable statutes.&#10;10.25   (2) In a condominium, the preexisting condominium plat shall be the CIC plat and &#10;10.26   an amended CIC plat shall be required only if the amended declaration or bylaws contain &#10;10.27   provisions inconsistent with the preexisting condominium plat. The condominium's CIC &#10;10.28   number shall be the apartment ownership number or condominium number originally &#10;10.29   assigned to it by the recording officer. In a cooperative in which the unit owners' interests &#10;10.30   are characterized as real estate, a CIC plat shall be required. In a planned community, the &#10;10.31   preexisting plat recorded pursuant to chapter 505, 508, or 508A, or the part of the plat &#10;10.32   upon which the common interest community is located, shall be the CIC plat.&#10;10.33   (3) The amendment shall comply with section 515B.2-118(a)(3).&#10;10.34   (4) Except as permitted by paragraph (3), no declarant, affiliate of declarant, &#10;10.35   association, master association nor unit owner may acquire, increase, waive, reduce or &#10;10.36   revoke any previously existing warranty rights or causes of action that one of said persons &#10;11.1    has against any other of said persons by reason of exercising the right of election under &#10;11.2    this subsection.&#10;11.3    (5) A common interest community which elects to be subject to this chapter may, as &#10;11.4    a part of the election process, change its form of ownership by complying with section &#10;11.5    515B.2-123.&#10;11.6    (e) Except as otherwise provided in this subsection, this chapter shall not apply, &#10;11.7    except by election pursuant to subsection (d), to the following:&#10;11.8    (1) a planned community which consists of two units, which utilizes a common &#10;11.9    interest community plat complying with section 515B.2-110(d)(1) and (2), which is not &#10;11.10   subject to any rights to subdivide or convert units or to add additional real estate, and &#10;11.11   which is not subject to a master association;&#10;11.12   (2) a common interest community where the units consist solely of separate parcels &#10;11.13   of real estate designed or utilized for detached single family dwellings or agricultural &#10;11.14   purposes, and where the association or a master association has no obligation to maintain &#10;11.15   any building containing a dwelling or any agricultural building;&#10;11.16   (3) a cooperative where, at the time of creation of the cooperative, the unit owners' &#10;11.17   interests in the dwellings as described in the declaration consist solely of proprietary &#10;11.18   leases having an unexpired term of fewer than 20 years, including renewal options;&#10;11.19   (4) planned communities utilizing a common interest community plat complying &#10;11.20   with section 515B.2-110(d)(1) and (2) and cooperatives, which are limited by the &#10;11.21   declaration to nonresidential use; or&#10;11.22   (5) real estate subject only to an instrument or instruments filed primarily for the &#10;11.23   purpose of creating or modifying rights with respect to access, utilities, parking, ditches, &#10;11.24   drainage, or irrigation.&#10;11.25   <ins>(f) Section 515B.4-101(e) applies to any platted lot or other parcel of real estate that </ins>&#10;11.26   <ins>is subject to a master declaration and is not subject to or is exempt from this chapter.</ins>&#10;11.27   <del>(f)</del><ins> (g)</ins> Section 515B.1-106 shall apply to all common interest communities.&#10;&#10;<a id="go.0.8.0"></a>11.28       Sec. 8. Minnesota Statutes 2005 Supplement, section 515B.1-106, is amended to read:&#10;11.29   <b>515B.1-106 APPLICABILITY OF LOCAL REQUIREMENTS.</b>&#10;11.30   (a) Except as provided in subsections (b) and (c), a zoning, subdivision, building &#10;11.31   code, or other real estate use law, ordinance, charter provision, or regulation may not &#10;11.32   directly or indirectly prohibit the common interest community form of ownership or &#10;11.33   impose any requirement upon a common interest community, upon the creation or &#10;11.34   disposition of a common interest community or upon any part of the common interest &#10;11.35   community conversion process which it would not impose upon a physically similar &#10;12.1    development under a different form of ownership. Otherwise, no provision of this chapter &#10;12.2    invalidates or modifies any provision of any zoning, subdivision, building code, or other &#10;12.3    real estate use law, ordinance, charter provision, or regulation.&#10;12.4    (b) Subsection (a) shall not apply to any ordinance, rule, regulation, charter provision &#10;12.5    or contract provision relating to the financing of housing construction, rehabilitation, or &#10;12.6    purchases provided by or through a housing finance program established and operated &#10;12.7    pursuant to state or federal law by a state or local agency or local unit of government.&#10;12.8    (c) A statutory or home rule charter city, pursuant to an ordinance or charter &#10;12.9    provision establishing standards to be applied uniformly within its jurisdiction, may &#10;12.10   prohibit or impose reasonable conditions upon the conversion of buildings occupied &#10;12.11   wholly or partially for residential use to the common interest community form of &#10;12.12   ownership only if there exists within the city a significant shortage of suitable rental &#10;12.13   dwellings available to low and moderate income individuals or families or to establish or &#10;12.14   maintain the city's eligibility for any federal or state program providing direct or indirect &#10;12.15   financial assistance for housing to the city. Prior to the adoption of an ordinance pursuant &#10;12.16   to the authority granted in this subsection, the city shall conduct a public hearing. Any &#10;12.17   ordinance or charter provision adopted pursuant to this subsection shall not apply to &#10;12.18   any existing or proposed conversion common interest community (i) for which a bona &#10;12.19   fide loan commitment for a consideration has been issued by a lender and is in effect on &#10;12.20   the date of adoption of the ordinance or charter provision, or (ii) for which a notice of &#10;12.21   conversion or intent to convert required by section 515B.4-111, containing a termination &#10;12.22   of tenancy, has been given to at least 75 percent of the tenants and subtenants in possession &#10;12.23   prior to the date of adoption of the ordinance or charter provision.&#10;12.24   (d) For purposes of providing marketable title, a statement in the declaration that &#10;12.25   the common interest community is not subject to an ordinance or that any conditions &#10;12.26   required under an ordinance have been complied with shall be prima facie evidence that &#10;12.27   the common interest community was not created in violation of the ordinance.&#10;12.28   (e) A violation of an ordinance or charter provision adopted pursuant to the &#10;12.29   provisions of subsection (b) or (c) shall not affect the validity of a common interest &#10;12.30   community. This subsection shall not be construed to in any way limit the power of &#10;12.31   a city to enforce the provisions of an ordinance or charter provision adopted pursuant &#10;12.32   to subsection (b) or (c).&#10;12.33   (f) Any ordinance or charter provision enacted hereunder<ins> that prohibits the </ins>&#10;12.34   <ins>conversion of buildings to the common interest community form of ownership</ins> shall not be &#10;12.35   effective for a period exceeding 18 months.&#10;&#10;<a id="go.0.9.0"></a>13.1        Sec. 9. Minnesota Statutes 2005 Supplement, section 515B.2-101, is amended to read:&#10;13.2    <b>515B.2-101 CREATION OF COMMON INTEREST COMMUNITIES.</b>&#10;13.3    (a) On and after June 1, 1994, a common interest community may be created only &#10;13.4    as follows:&#10;13.5    (1) A condominium may be created only by recording a declaration.&#10;13.6    (2) A cooperative may be created only by recording a declaration and by recording a &#10;13.7    conveyance of the real estate subject to that declaration to the association.&#10;13.8    (3) A planned community which includes common elements may be created only &#10;13.9    by simultaneously recording a declaration and a conveyance of the common elements &#10;13.10   subject to that declaration to the association.&#10;13.11   (4) A planned community without common elements may be created only by &#10;13.12   recording a declaration.&#10;13.13   (b) Except as otherwise expressly provided in this chapter, the declaration shall &#10;13.14   be executed by all persons whose interests in the real estate will be conveyed to unit &#10;13.15   owners or to the association, except vendors under contracts for deed, and by every lessor &#10;13.16   of a lease the expiration or termination of which will terminate the common interest &#10;13.17   community. The declaration shall be recorded in every county in which any portion of &#10;13.18   the common interest community is located. Failure of any party not required to execute a &#10;13.19   declaration, but having a recorded interest in the common interest community, to join in &#10;13.20   the declaration shall have no effect on the validity of the common interest community; &#10;13.21   provided that the party is not bound by the declaration until that party acknowledges the &#10;13.22   existence of the common interest community in a recorded instrument.&#10;13.23   (c) In a condominium, a planned community utilizing a CIC plat complying with &#10;13.24   section 515B.2-110(c), or a cooperative<ins>,</ins> where the unit boundaries are delineated by &#10;13.25   a structure, a declaration, or an amendment to a declaration adding units, shall not be &#10;13.26   recorded unless the structural components of the structures containing the units and &#10;13.27   the mechanical systems serving more than one unit, but not the units, are substantially &#10;13.28   completed, as evidenced by a recorded certificate executed by a registered engineer or &#10;13.29   architect.&#10;13.30   (d) A project which (i) meets the definition of a "common interest community" in &#10;13.31   section 515B.1-103(10), (ii) is created after May 31, 1994, and (iii) is not exempt under &#10;13.32   section 515B.1-102(e), is subject to this chapter even if this or other sections of the chapter &#10;13.33   have not been complied with, and the declarant and all unit owners are bound by all &#10;13.34   requirements and obligations of this chapter.&#10;13.35   (e) The association shall be incorporated pursuant to section 515B.3-101 and the &#10;13.36   CIC plat shall be recorded as and if required by section 515B.2-110.&#10;&#10;<a id="go.0.10.0"></a>14.1        Sec. 10. Minnesota Statutes 2005 Supplement, section 515B.2-110, is amended to read:&#10;14.2    <b>515B.2-110 COMMON INTEREST COMMUNITY PLAT (CIC PLAT).</b>&#10;14.3    (a) A CIC plat is required for condominiums and planned communities, and &#10;14.4    cooperatives in which the unit owners' interests are characterized as real estate. The CIC &#10;14.5    plat is a part of the declaration in condominiums, in planned communities utilizing a CIC &#10;14.6    plat complying with subsection (c), and in cooperatives in which the unit owners' interests &#10;14.7    are characterized as real estate, but need not be physically attached to the declaration.&#10;14.8    (1) In a condominium, or a cooperative in which the unit owners' interests are &#10;14.9    characterized as real estate, the CIC plat shall comply with subsection (c).&#10;14.10   (2) In a planned community, a CIC plat which does not comply with subsection (c) &#10;14.11   shall consist of all or part of a subdivision plat or <del>plats complying with subsections (d)(1) </del>&#10;14.12   <del>and (d)(2)</del><ins> registered land survey complying with subsection (d), or any combination </ins>&#10;14.13   <ins>thereof</ins>. The CIC plat <ins>or registered land survey </ins>need not contain the number of the &#10;14.14   common interest community and may be recorded at any time before the recording of the &#10;14.15   declaration; provided, that if the CIC plat complies with subsection (c), the number of &#10;14.16   the common interest community shall be included and the CIC plat shall be recorded at &#10;14.17   the time of recording of the declaration.&#10;14.18   (3) In a cooperative in which the unit owners' interests are characterized as personal &#10;14.19   property, a CIC plat shall not be required. In lieu of a CIC plat, the declaration or &#10;14.20   any amendment to it creating, converting, or subdividing units in a personal property &#10;14.21   cooperative shall include an exhibit containing a scale drawing of each building, &#10;14.22   identifying the building, and showing the perimeter walls of each unit created or changed &#10;14.23   by the declaration or any amendment to it, including the unit's unit identifier, and its &#10;14.24   location within the building if the building contains more than one unit.&#10;14.25   (b) The CIC plat, or supplemental or amended CIC plat, for condominiums, for &#10;14.26   planned communities using a plat complying with subsection (c), and for cooperatives in &#10;14.27   which the unit owners' interests are characterized as real estate, shall contain certifications &#10;14.28   by a licensed professional land surveyor and licensed professional architect, as to the parts &#10;14.29   of the CIC plat prepared by each, that (i) the CIC plat accurately depicts all information &#10;14.30   required by this section, and (ii) the work was undertaken by, or reviewed and approved &#10;14.31   by, the certifying land surveyor or architect. The portions of the CIC plat depicting the &#10;14.32   dimensions of the portions of the common interest community described in subsections &#10;14.33   (c)(8), (9), (10), and (12), may be prepared by either a land surveyor or an architect. The &#10;14.34   other portions of the CIC plat shall be prepared only by a land surveyor. A certification of &#10;14.35   the CIC plat or supplemental CIC plat, or an amendment to it, under this subsection by an &#10;14.36   architect is not required if all parts of the CIC plat, supplemental CIC plat, or amendment &#10;15.1    are prepared by a land surveyor. Certification by the land surveyor or architect does not &#10;15.2    constitute a guaranty or warranty of the nature, suitability, or quality of construction of &#10;15.3    any improvements located or to be located in the common interest community.&#10;15.4    (c) A CIC plat for a condominium, or a cooperative in which the unit owners' &#10;15.5    interests are characterized as real estate, shall show:&#10;15.6    (1) the number of the common interest community, and the boundaries, dimensions &#10;15.7    and a legally sufficient description of the land included therein;&#10;15.8    (2) the dimensions and location of all existing, material structural improvements &#10;15.9    and roadways;&#10;15.10   (3) the intended location and dimensions of any contemplated common element &#10;15.11   improvements to be constructed within the common interest community after the filing of &#10;15.12   the CIC plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT";&#10;15.13   (4) the location and dimensions of any additional real estate, labeled as such, and a &#10;15.14   legally sufficient description of the additional real estate;&#10;15.15   (5) the extent of any encroachments by or upon any portion of the common interest &#10;15.16   community;&#10;15.17   (6) the location and dimensions of all recorded easements within the land included &#10;15.18   in the common interest community burdening any portion of the land;&#10;15.19   (7) the distance and direction between noncontiguous parcels of real estate;&#10;15.20   (8) the location and dimensions of limited common elements, except that with &#10;15.21   respect to limited common elements described in section 515B.2-102, subsections (d) and &#10;15.22   (f), only such material limited common elements as porches, balconies, decks, patios, and &#10;15.23   garages shall be shown;&#10;15.24   (9) the location and dimensions of the front, rear, and side boundaries of each unit &#10;15.25   and that unit's unit identifier;&#10;15.26   (10) the location and dimensions of the upper and lower boundaries of each unit &#10;15.27   with reference to an established or assumed datum and that unit's unit identifier;&#10;15.28   (11) a legally sufficient description of any real estate in which the unit owners will &#10;15.29   own only an estate for years, labeled as "leasehold real estate";&#10;15.30   (12) any units which may be converted by the declarant to create additional units or &#10;15.31   common elements identified separately.&#10;15.32   (d) A CIC plat for a planned community either shall comply with subsection (c), &#10;15.33   or it shall:&#10;15.34   (1) comply with chapter 505<ins>, 508, or 508A, as applicable</ins>; and&#10;16.1    (2) comply with the <del>platting</del><ins> applicable subdivision</ins> requirements of any &#10;16.2    governmental authority within whose jurisdiction the planned community is located, &#10;16.3    subject to the limitations set forth in section 515B.1-106.&#10;16.4    (e) If a declarant adds additional real estate, the declarant shall record a supplemental &#10;16.5    CIC plat or plats for the real estate being added, conforming to the requirements of this &#10;16.6    section which apply to the type of common interest community in question. If less than &#10;16.7    all additional real estate is being added, the supplemental CIC plat for a condominium, &#10;16.8    a planned community whose CIC plat complies with subsection (c), or a cooperative &#10;16.9    in which the unit owners' interests are characterized as real estate, shall also show the &#10;16.10   location and dimensions of the remaining portion.&#10;16.11   (f) If, pursuant to section 515B.2-112, a declarant subdivides or converts any unit &#10;16.12   into two or more units, common elements or limited common elements, or combines &#10;16.13   two or more units, the declarant shall record an amendment to the CIC plat showing &#10;16.14   the location and dimensions of any new units, common elements or limited common &#10;16.15   elements thus created.&#10;16.16   (g) A CIC plat which complies with subsection (c) is not subject to chapter 505.&#10;&#10;<a id="go.0.11.0"></a>16.17       Sec. 11. Minnesota Statutes 2005 Supplement, section 515B.2-112, is amended to read:&#10;16.18   <b>515B.2-112 SUBDIVISION, COMBINATION, OR CONVERSION OF UNITS.</b>&#10;16.19   (a) If the declaration so provides, (i) one or more units may be subdivided into two &#10;16.20   or more units or combined into a lesser number of units, or (ii) a unit or units owned &#10;16.21   exclusively by a declarant may be subdivided, combined, or converted into one or more &#10;16.22   units, limited common elements, common elements, or a combination of units, limited &#10;16.23   common elements or common elements.&#10;16.24   (b) If the unit or units are not owned exclusively by a declarant, the unit owners of &#10;16.25   the units to be combined or subdivided shall cause to be prepared and submitted to the &#10;16.26   association for approval an application for an amendment to the declaration and amended &#10;16.27   CIC plat, for the purpose of subdividing or combining the unit or units. The application &#10;16.28   shall contain, at a minimum, a general description of the proposed subdivision or &#10;16.29   combination, and shall specify in detail the matters required by subsection (c)(2) and (3). &#10;16.30   The basis for disapproval of the application by the association shall be limited to (i) health &#10;16.31   or safety considerations, (ii) liability considerations for the association and other unit &#10;16.32   owners, (iii) aesthetic changes to the common elements or another unit, (iv) any material &#10;16.33   and adverse impact on the common elements or another unit, or (v) a failure to comply &#10;16.34   with the declaration, this chapter, or governmental laws, ordinances, or regulations. The &#10;16.35   association shall give written notice of its decision and required changes to the unit owner &#10;17.1    or owners who made the application. The association shall establish fair and reasonable &#10;17.2    procedures and time frames for the submission and prompt processing of the applications.<ins> </ins>&#10;17.3    <ins>If an application under this subsection is approved, the unit owner shall cause an </ins>&#10;17.4    <ins>amendment and amended CIC plat to be prepared based upon the approved application.</ins>&#10;17.5    (c) <del>If an application under subsection (b) is approved, the unit owner shall cause an </del>&#10;17.6    <del>amendment and amended CIC plat to be prepared based upon the approved application. </del>&#10;17.7    <del>The amendment shall:</del><ins> An amendment under this section shall:</ins>&#10;17.8    (1) be executed by the association and by each unit owner and any secured party &#10;17.9    with respect to each unit to be combined or subdivided<ins>, if approved under subsection (b)</ins>;&#10;17.10   (2) assign a unit identifier to each unit resulting from the subdivision<ins>, conversion,</ins> or &#10;17.11   combination;&#10;17.12   (3) reallocate the common element interest, votes in the association, and common &#10;17.13   expense liability, as applicable, formerly allocated to the unit or units to be combined<ins>, </ins>&#10;17.14   <ins>converted,</ins> or subdivided among the unit or units resulting from the subdivision or &#10;17.15   combination<ins>, or among all units in the case of a conversion, as applicable,</ins> on the basis of &#10;17.16   the formula described in the declaration; and&#10;17.17   (4) conform to the requirements of the declaration and this chapter.&#10;17.18   (d) If the association determines that the amendment and amended CIC plat conform &#10;17.19   to the approved application, the declaration, and this chapter, the association shall execute &#10;17.20   the amendment and cause the amendment and the amended CIC plat to be recorded. The &#10;17.21   association may require the unit owners executing the amendment to pay all fees and costs &#10;17.22   for reviewing, preparing, and recording the amendment and the amended CIC plat, and &#10;17.23   any other fees or costs incurred by the association in connection therewith.&#10;17.24   (e) If the unit or units are owned exclusively by a declarant, the declarant shall &#10;17.25   have the authority to unilaterally prepare and record, at its expense, an amendment &#10;17.26   and an amended CIC plat subdividing, combining, or converting the unit or units. The &#10;17.27   amendment shall comply with subsections (c)<del>(1),</del> (2), (3), and (4), and shall be limited &#10;17.28   to those provisions necessary to accomplish the subdivision, combination, or conversion &#10;17.29   unless the consent of unit owners required to amend the declaration is obtained.&#10;17.30   (f) The amended CIC plat shall show the resulting common elements, limited &#10;17.31   common elements or units, as subdivided, combined, or converted.&#10;17.32   (g) A secured party's interest and remedies shall be deemed to apply to the unit or &#10;17.33   units that result from the subdivision or combination of the unit or units in which the &#10;17.34   secured party held a security interest. If the secured party enforces any remedy, including &#10;17.35   foreclosure of its lien, against any of the resulting units, all instruments and notices &#10;18.1    relating to the foreclosure shall describe the subject property in terms of the amendment &#10;18.2    and the amended CIC plat which created the resulting units.&#10;&#10;<a id="go.0.12.0"></a>18.3        Sec. 12. Minnesota Statutes 2005 Supplement, section 515B.2-121, is amended to read:&#10;18.4    <b>515B.2-121 MASTER ASSOCIATIONS.</b>&#10;18.5    (a) A master association formed after June 1, 1994, shall be organized as a Minnesota &#10;18.6    profit, nonprofit or cooperative corporation. A master association shall be incorporated &#10;18.7    prior to the delegation to it of any powers under this chapter.&#10;18.8    (b) The members of the master association shall be any combination of (i) unit &#10;18.9    owners of one or more common interest communities, (ii) one or more associations, &#10;18.10   (iii) one or more master associations, or (iv) owners of real estate or property owner's &#10;18.11   associations not subject to this chapter in combination with any other category of member. &#10;18.12   An association or its members may be members of an entity created before June 1, 1994, &#10;18.13   which performs functions similar to those performed by a master association regardless of &#10;18.14   whether the entity is subject to this chapter.&#10;18.15   (c) A master association shall be governed by a board of directors. Except as &#10;18.16   expressly prohibited by the master declaration, the master association's articles of &#10;18.17   incorporation or bylaws, or other provisions of this chapter, the master association board &#10;18.18   may act in all instances on behalf of the master association. The directors of a master &#10;18.19   association shall be elected or, if a nonprofit corporation, elected or appointed, in a manner &#10;18.20   consistent with the requirements of the statute under which the master association is &#10;18.21   formed and of the master association's articles of incorporation and bylaws, and subject to &#10;18.22   the following requirements:&#10;18.23   (1) Except as set forth in subsections (2) and (3), the members of the master &#10;18.24   association shall elect the board of directors. A majority of the directors shall be members &#10;18.25   of the master association or members of a member of the master association, and shall be &#10;18.26   persons other than a declarant or affiliate of a declarant. If the member is not a natural &#10;18.27   person, it may designate a natural person to act on its behalf.&#10;18.28   (2) The articles of incorporation or bylaws of the master association may authorize &#10;18.29   any person, whether or not the person is a member of, or otherwise subject to, the master &#10;18.30   association, including a declarant, to appoint or elect one director.&#10;18.31   (3) A master association's articles of incorporation may suspend the members' right &#10;18.32   to elect or, in the case of a nonprofit corporation, elect or appoint, the master association's &#10;18.33   board of directors for a specified time period. During this period, the person or persons &#10;18.34   who execute the master declaration under subsection (f)(1), or their successors or assigns, &#10;18.35   may appoint the directors. The period during which the person or persons may appoint &#10;19.1    the directors begins when the master declaration is recorded and terminates upon the &#10;19.2    earliest of:&#10;19.3    (i) the voluntary surrender of the right to appoint directors;&#10;19.4    (ii) the date ten years after the date the master declaration is recorded;&#10;19.5    (iii) the date, if any, in the articles of incorporation; or&#10;19.6    (iv) the date when at least 75 percent of the units and other parcels of real estate &#10;19.7    which are referred to in subsection (f)(1)(vii) have been conveyed to such persons for &#10;19.8    occupancy by the persons or their tenants.&#10;19.9    (4) The term of any director appointed under subsection (3) expires 60 days after &#10;19.10   the right to appoint directors terminates. The master association's board of directors shall &#10;19.11   call an annual or special meeting of the master association's members to elect or appoint &#10;19.12   successor directors within the 60-day period.&#10;19.13   (5) The system for the election of directors shall be fair and equitable and shall &#10;19.14   take into account the number of members of each association any of whose powers are &#10;19.15   delegated to the master association, the needs of the members of the master association, &#10;19.16   the allocation of liability for master association common expenses, and the types of &#10;19.17   common interest communities and other real estate subject to the master association.&#10;19.18   (d) The articles of incorporation or bylaws of the master association may authorize &#10;19.19   special classes of directors and allocations of director voting rights, as follows: (i) classes &#10;19.20   of directors that are elected by different classes of members, to address operational, &#10;19.21   physical, or administrative differences within the master association, or (ii) class voting &#10;19.22   by the classes of directors on specific issues affecting only a certain class or classes of &#10;19.23   members, units or other parcels of real estate, or to otherwise protect the legitimate &#10;19.24   interests of such class or classes. No person may utilize such special classes or allocations &#10;19.25   for the purpose of evading any limitation imposed on declarants by this chapter.&#10;19.26   (e) The officers of a master association shall be elected, appointed, or designated in &#10;19.27   a manner consistent with the statute under which the master association is formed and &#10;19.28   consistent with the master association articles of incorporation and bylaws.&#10;19.29   (f) The creation and authority of a master association shall be governed by the &#10;19.30   following requirements:&#10;19.31   (1) A master declaration shall be recorded in connection with the creation of a master &#10;19.32   association. The master declaration shall be executed by the owners of the real estate &#10;19.33   subjected to the master declaration. The master declaration shall contain, at a minimum:&#10;19.34   (i) the name of the master association;&#10;20.1    (ii) a legally sufficient description of the real estate which is subject to the master &#10;20.2    declaration and a legally sufficient description of any other real estate which may be &#10;20.3    subjected to the master declaration pursuant to subsection (g);&#10;20.4    (iii) a statement as to whether the real estate subject to, and which may be subjected &#10;20.5    to, the master declaration collectively is or collectively will be a separate common interest &#10;20.6    community;&#10;20.7    (iv) a description of the members of the master association;&#10;20.8    (v) a description of the master association's powers. To the extent described in &#10;20.9    the master declaration, a master association has the powers with respect to the master &#10;20.10   association's members and the property subject to the master declaration that section &#10;20.11   515B.3-102 grants to an association with respect to the association's members and the &#10;20.12   property subject to the declaration. A master association also has the powers delegated to &#10;20.13   it by an association pursuant to subsection (f)(2) or by a property owner's association not &#10;20.14   subject to the chapter; provided (i) that the master declaration identifies the powers and &#10;20.15   authorizes the delegation either expressly or by a grant of authority to the board of the &#10;20.16   association or property owner's association and (ii) that the master association board has &#10;20.17   not refused the delegation pursuant to subsection (f)(4). The provisions of the declarations &#10;20.18   of the common interest communities, or the provisions of recorded instruments governing &#10;20.19   other property subject to the master declaration, that delegate powers to the master &#10;20.20   association shall be consistent with the provisions of the master declaration that govern &#10;20.21   the delegation of the powers;&#10;20.22   (vi) a description of the formulas governing the allocation of assessments and &#10;20.23   member voting rights, including any special classes or allocations referred to in subsection &#10;20.24   (d);&#10;20.25   (vii) a statement of the total number of units and other parcels of real estate intended &#10;20.26   for <del>residential use by a person or the person's tenants</del><ins> private ownership and use</ins> that are &#10;20.27   (i) subject to the master declaration as initially recorded and (ii) intended to be created by &#10;20.28   the addition of real estate or by the subdivision of units or other parcels of real estate; and&#10;20.29   (viii) the requirements for amendment of the master declaration, other than an &#10;20.30   amendment under subsection (g).&#10;20.31   (2) The declaration of a common interest community located on property subject to &#10;20.32   a master declaration may:&#10;20.33   (i) delegate any of the powers described in section 515B.3-102 to the &#10;20.34   master association; provided, that a delegation of the powers described in section &#10;20.35   515B.3-102(a)(2) is effective only if expressly stated in the declaration; and&#10;21.1    (ii) authorize the board to delegate any of the powers described in section &#10;21.2    515B.3-102, except for the powers described in section 515B.3-102(a)(2), to the master &#10;21.3    association.&#10;21.4    (3) With respect to any other property subject to a master association, there need &#10;21.5    not be an instrument other than the master declaration recorded against the property to &#10;21.6    empower the master association to exercise powers with respect to the property.&#10;21.7    (4) If a declaration or other recorded instrument authorizes the board or the board &#10;21.8    of a property owner's association to delegate powers to a master association, the master &#10;21.9    association board may refuse any delegation of powers that does not comply with (i) &#10;21.10   this chapter, (ii) the declaration or other recorded instrument, or (iii) the organizational &#10;21.11   documents of the master association.&#10;21.12   (5) The failure of a declaration, a board or an owner of property subject to a master &#10;21.13   association to properly delegate some or all of the powers to the master association does &#10;21.14   not affect the authority of the master association to exercise those and other powers with &#10;21.15   respect to other common interest communities or owners of properties that are subject &#10;21.16   to the master association.&#10;21.17   (g) The master declaration may authorize other real estate to be subjected to the &#10;21.18   master declaration. The other real estate shall be subjected to the master declaration by an &#10;21.19   amendment executed by the owner of the other real estate and any other person or persons &#10;21.20   required by the master declaration, and recorded.&#10;21.21   (h) Sections 515B.3-103(a), (b), and (g), 515B.3-108, 515B.3-109, 515B.3-110, and &#10;21.22   515B.3-112 shall apply in the conduct of the affairs of a master association. But the rights &#10;21.23   of voting, notice, and other rights enumerated in those sections apply to persons who elect &#10;21.24   or appoint the board of a master association, whether or not those persons are otherwise &#10;21.25   unit owners within the meaning of this chapter.&#10;21.26   (i) If so provided in the master declaration, a master association may levy &#10;21.27   assessments for common expenses of the master association against the property subject &#10;21.28   to the master declaration, and have and foreclose liens securing the assessments. The &#10;21.29   liens shall have the same priority against secured parties, shall include the same fees and &#10;21.30   charges, and may be foreclosed in the same manner, as assessment liens under section &#10;21.31   515B.3-116. The master association's lien shall have priority as against the lien of an &#10;21.32   association or property owner's association subject to the master association, regardless &#10;21.33   of when the lien arose or was perfected.&#10;21.34   (1) Master association common expenses shall be allocated among the members of &#10;21.35   the master association in a fair and equitable manner. If the members include associations &#10;21.36   or property owner's associations, then the master assessments may be allocated among &#10;22.1    and levied against the associations or property owner's associations, or allocated among &#10;22.2    and levied against the units or other parcels of real estate owned by the members of the &#10;22.3    association or property owner's association. If so provided in the master declaration, &#10;22.4    master assessments levied against a member association or property owner's association &#10;22.5    are allocated among and levied against the units or other parcels of real estate owned &#10;22.6    by the members of the association or property owner's association. If applicable and &#10;22.7    appropriate, the formulas and principles described in section 515B.2-108, subsections (b), &#10;22.8    (c), (d), and (e), shall be used in making the allocations. The assessment formulas and &#10;22.9    procedures described in the declarations of any common interest communities or any &#10;22.10   instruments governing other real estate subject to the master association shall not conflict &#10;22.11   with the formulas and procedures described in the master declaration.&#10;22.12   (2) The master declaration may exempt from liability for all or a portion of master &#10;22.13   association assessments any person authorized by subsection (c)(3) to appoint the &#10;22.14   members of the master association board, or any other person, and exempt any unit or &#10;22.15   other parcel of real estate owned by the person from a lien for such assessments, until a &#10;22.16   building constituting or located within the unit or other parcel of real estate is substantially &#10;22.17   completed. Substantial completion shall be evidenced by a certificate of occupancy in &#10;22.18   a jurisdiction that issues that certificate.&#10;22.19   (j) A master association shall not be used, directly or indirectly, to avoid or nullify &#10;22.20   any warranties or other obligations for which a declarant of a common interest community &#10;22.21   subject to the master association is responsible, or to otherwise avoid the requirements &#10;22.22   of this chapter.&#10;&#10;<a id="go.0.13.0"></a>22.23       Sec. 13. Minnesota Statutes 2005 Supplement, section 515B.3-115, is amended to read:&#10;22.24   <b>515B.3-115 ASSESSMENTS FOR COMMON EXPENSES.</b>&#10;22.25   (a) The obligation of a unit owner to pay common expense assessments shall be &#10;22.26   as follows:&#10;22.27   (1) If a common expense assessment has not been levied, the declarant shall pay all &#10;22.28   operating expenses of the common interest community, and shall fund the replacement &#10;22.29   reserve component of the common expenses as required by subsection (b).&#10;22.30   (2) If a common expense assessment has been levied, all unit owners including the &#10;22.31   declarant shall pay the assessments allocated to their units, subject to the following:&#10;22.32   (i) If the declaration so provides, a declarant's liability, and the assessment lien, for &#10;22.33   the common expense assessments, exclusive of replacement reserves, on any unit owned &#10;22.34   by the declarant may be limited to 25 percent or more of any assessment, exclusive of &#10;22.35   replacement reserves, until the unit or any building located in the unit is substantially &#10;23.1    completed. Substantial completion shall be evidenced by a certificate of occupancy in &#10;23.2    any jurisdiction that issues the certificate.&#10;23.3    (ii) If the declaration provides for a reduced assessment pursuant to paragraph (2)(i), &#10;23.4    the declarant shall be obligated, within 60 days following the termination of the period &#10;23.5    of <del>the</del> declarant control, to make up any operating deficit incurred by the association &#10;23.6    during the period of declarant control.<ins> The existence and amount, if any, of the operating </ins>&#10;23.7    <ins>deficit shall be determined using the accrual basis of accounting applied as of the date of </ins>&#10;23.8    <ins>termination of the period of declarant control, regardless of the accounting methodology </ins>&#10;23.9    <ins>previously used by the association to maintain its accounts.</ins>&#10;23.10   (b) The replacement reserve component of the common expenses shall be funded &#10;23.11   for each unit in accordance with the projected annual budget required by section &#10;23.12   515B.4-102(23); provided, that the funding of replacement reserves with respect to a unit &#10;23.13   shall commence no later than the date that the unit or any building located within the unit &#10;23.14   boundaries is substantially completed. Substantial completion shall be evidenced by a &#10;23.15   certificate of occupancy in any jurisdiction that issues the certificate.&#10;23.16   (c) After an assessment has been levied by the association, assessments shall be &#10;23.17   levied at least annually, based upon a budget approved at least annually by the association.&#10;23.18   (d) Except as modified by subsections (a)(1) and (2), (e), (f), and (g), all common &#10;23.19   expenses shall be assessed against all the units in accordance with the allocations &#10;23.20   established by the declaration pursuant to section 515B.2-108.&#10;23.21   (e) Unless otherwise required by the declaration:&#10;23.22   (1) any common expense associated with the maintenance, repair, or replacement &#10;23.23   of a limited common element shall be assessed against the units to which that limited &#10;23.24   common element is assigned, equally, or in any other proportion the declaration provides;&#10;23.25   (2) any common expense or portion thereof benefiting fewer than all of the units &#10;23.26   may be assessed exclusively against the units benefited, equally, or in any other proportion &#10;23.27   the declaration provides;&#10;23.28   (3) the costs of insurance may be assessed in proportion to risk or coverage, and the &#10;23.29   costs of utilities may be assessed in proportion to usage;&#10;23.30   (4) reasonable attorneys fees and costs incurred by the association in connection &#10;23.31   with (i) the collection of assessments and, (ii) the enforcement of this chapter, the articles, &#10;23.32   bylaws, declaration, or rules and regulations, against a unit owner, may be assessed &#10;23.33   against the unit owner's unit; and&#10;23.34   (5) fees, charges, late charges, fines and interest may be assessed as provided &#10;23.35   in section 515B.3-116(a).&#10;24.1    (f) Assessments levied under section 515B.3-116 to pay a judgment against the &#10;24.2    association may be levied only against the units in the common interest community at the &#10;24.3    time the judgment was entered, in proportion to their common expense liabilities.&#10;24.4    (g) If any damage to the common elements or another unit is caused by the act or &#10;24.5    omission of any unit owner, or occupant of a unit, or their invitees, the association may &#10;24.6    assess the costs of repairing the damage exclusively against the unit owner's unit to the &#10;24.7    extent not covered by insurance.&#10;24.8    (h) Subject to any shorter period specified by the declaration or bylaws, if any &#10;24.9    installment of an assessment becomes more than 60 days past due, then the association &#10;24.10   may, upon ten days' written notice to the unit owner, declare the entire amount of the &#10;24.11   assessment immediately due and payable in full.&#10;24.12   (i) If common expense liabilities are reallocated for any purpose authorized by this &#10;24.13   chapter, common expense assessments and any installment thereof not yet due shall be &#10;24.14   recalculated in accordance with the reallocated common expense liabilities.&#10;24.15   (j) An assessment against fewer than all of the units must be levied within three years &#10;24.16   after the event or circumstances forming the basis for the assessment, or shall be barred.&#10;&#10;<a id="go.0.14.0"></a>24.17       Sec. 14. Minnesota Statutes 2005 Supplement, section 515B.3-117, is amended to read:&#10;24.18   <b>515B.3-117 OTHER LIENS.</b>&#10;24.19   (a) Except in a cooperative and except as otherwise provided in this chapter or in &#10;24.20   a security instrument, an individual unit owner may have the unit owner's unit released &#10;24.21   from a lien if the unit owner pays the lienholder the portion of the amount which the &#10;24.22   lien secures that is attributable to the unit. Upon the receipt of payment, the lienholder &#10;24.23   shall promptly deliver to the unit owner a recordable partial satisfaction and release of &#10;24.24   lien releasing the unit from the lien. The release shall be deemed to include a release of &#10;24.25   any rights in the common elements appurtenant to the unit. The portion of the amount &#10;24.26   which a lien secures that is attributable to the unit shall be equal to the total amount which &#10;24.27   the lien secures multiplied by a percentage calculated by dividing the common expense &#10;24.28   liability attributable to the unit by the common expense liability attributable to all units &#10;24.29   against which the lien has been recorded, or in the case of a lien under subsection (b), the &#10;24.30   units against which the lien is permitted or required to be recorded. At the request of a &#10;24.31   lien claimant or unit owners, the association shall provide a written statement of the &#10;24.32   percentage of common expense liability attributable to all units. After a unit owner's &#10;24.33   payment pursuant to this section, the association may not assess the unit for any common &#10;24.34   expense incurred thereafter in connection with the satisfaction or defense against the lien.&#10;25.1    (b) Labor performed or materials furnished for the improvement of a unit shall be &#10;25.2    the basis for the recording of a lien against that unit pursuant to the provisions of chapter &#10;25.3    514 but shall not be the basis for the recording of a lien against the common elements. &#10;25.4    Labor performed or materials furnished for the improvement of common elements, for &#10;25.5    which a lien may be recorded under chapter 514, if duly authorized by the association, &#10;25.6    shall be deemed to be performed or furnished with the express consent of each unit owner, &#10;25.7    and shall be perfected by recording a lien against all the units in the common interest &#10;25.8    community, but shall not be the basis for the recording of a lien against the common &#10;25.9    elements except in the case of a condominium on registered land, in which case a lien &#10;25.10   must be filed pursuant to section 508.351, subdivision <del>3</del><ins> 5</ins>, or 508A.351, subdivision <del>3</del><ins> 5</ins>. &#10;25.11   Where a lien is recorded against the units for labor performed or material furnished for the &#10;25.12   improvement of common elements, the association shall be deemed to be the authorized &#10;25.13   agent of the unit owners for purposes of receiving the notices required under sections &#10;25.14   514.011 and 514.08, subdivision 1, clause (2).&#10;25.15   (c) A security interest in a cooperative whose unit owners' interests in the units &#10;25.16   are personal property shall be perfected by recording a financing statement in the UCC &#10;25.17   filing section of the central filing system operated by the Office of the Secretary of &#10;25.18   State. In any disposition by a secured party pursuant to section 336.9-610 or retention &#10;25.19   pursuant to sections 336.9-620 to 336.9-622, the rights of the parties shall be the same &#10;25.20   as those provided by law, subject to the exceptions and requirements set forth in section &#10;25.21   515B.3-116(h)(3), and except that the unit owner has the right to reinstate the debt owing &#10;25.22   to the secured party by paying to the secured party, prior to the effective date of the &#10;25.23   disposition or retention, the amount which would be required to reinstate the debt under &#10;25.24   section 580.30 if the unit were wholly real estate.&#10;&#10;<a id="go.0.15.0"></a>25.25       Sec. 15. Minnesota Statutes 2005 Supplement, section 515B.4-101, is amended to read:&#10;25.26   <b>515B.4-101 APPLICABILITY; DELIVERY OF DISCLOSURE STATEMENT.</b>&#10;25.27   (a) Sections 515B.4-101 through 515B.4-118 apply to all units subject to this chapter, &#10;25.28   except as provided in subsection (c) or as modified or waived by written agreement of &#10;25.29   purchasers of a unit which is restricted to nonresidential use.&#10;25.30   (b) Subject to subsections (a) and (c), a declarant who offers a unit to a purchaser &#10;25.31   shall deliver to the purchaser a current disclosure statement which complies with the &#10;25.32   requirements of section 515B.4-102. The disclosure statement shall include any material &#10;25.33   amendments to the disclosure statement made prior to the conveyance of the unit to &#10;25.34   the purchaser. The declarant shall be liable to the purchaser to whom it delivered the &#10;26.1    disclosure statement for any false or misleading statement set forth therein or for any &#10;26.2    omission of a material fact therefrom.&#10;26.3    (c) Neither a disclosure statement nor a resale disclosure certificate need be prepared &#10;26.4    or delivered in the case of:&#10;26.5    (1) a gratuitous transfer;&#10;26.6    (2) a transfer pursuant to a court order;&#10;26.7    (3) a transfer to a government or governmental agency;&#10;26.8    (4) a transfer to a secured party by foreclosure or deed in lieu of foreclosure;&#10;26.9    (5) an option to purchase a unit, until exercised;&#10;26.10   (6) a transfer to a person who "controls" or is "controlled by," the grantor as those &#10;26.11   terms are defined with respect to a declarant under section 515B.1-103(2);&#10;26.12   (7) a transfer by inheritance;&#10;26.13   (8) a transfer of special declarant rights under section 515B.3-104; or&#10;26.14   (9) a transfer in connection with a change of form of common interest community &#10;26.15   under section 515B.2-123.&#10;26.16   (d) A purchase agreement for a unit shall contain the following notice: "The &#10;26.17   following notice is required by Minnesota Statutes. The purchaser is entitled to receive &#10;26.18   a disclosure statement or resale disclosure certificate, as applicable. The disclosure &#10;26.19   statement or resale disclosure certificate contains important information regarding the &#10;26.20   common interest community and the purchaser's cancellation rights."&#10;26.21   (e) A purchase agreement for the sale, to the initial occupant, of a platted lot or other &#10;26.22   parcel of real estate (i) which is subject to a master declaration, (ii) which is intended &#10;26.23   for residential occupancy, and (iii) which does not and is not intended to constitute a &#10;26.24   unit, shall contain the following notice: "The following notice is required by Minnesota &#10;26.25   Statutes: The real estate to be conveyed under this agreement is or will be subject to a &#10;26.26   master association as defined in Minnesota Statutes, chapter 515B. The master association &#10;26.27   <del>is obligated to</del><ins> shall</ins> provide to the <del>purchaser</del><ins> buyer</ins>, pursuant to Minnesota Statutes, &#10;26.28   section 515B.4-102(c), upon the <del>purchaser's</del><ins> buyer's</ins> request, a statement containing the &#10;26.29   information required by Minnesota Statutes, section 515B.4-102(a)(20), with respect to the &#10;26.30   master association, prior to the time that the <del>purchaser</del><ins> buyer</ins> signs a purchase agreement &#10;26.31   for the real estate. The statement contains important information regarding the master &#10;26.32   association and the <del>purchaser's</del><ins> buyer's</ins> obligations thereunder." A claim by a <del>purchaser</del><ins> </ins>&#10;26.33   <ins>buyer</ins> based upon a failure to include the foregoing notice in a purchase agreement:&#10;26.34   (1) shall be limited to legal, and not equitable, remedies;&#10;26.35   (2) shall be barred unless it is commenced within the time period specified in section &#10;26.36   515B.4-115(a); or&#10;27.1    (3) may be waived by a separate written document signed by the seller and <del>purchaser</del><ins> </ins>&#10;27.2    <ins>buyer</ins>.&#10;&#10;<a id="go.0.16.0"></a>27.3        Sec. 16. Minnesota Statutes 2005 Supplement, section 515B.4-102, is amended to read:&#10;27.4    <b>515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS.</b>&#10;27.5    (a) A disclosure statement shall fully and accurately disclose:&#10;27.6    (1) the name and, if available, the number of the common interest community;&#10;27.7    (2) the name and principal address of the declarant;&#10;27.8    (3) the number of units which the declarant has the right to include in the common &#10;27.9    interest community and a statement that the common interest community is either a &#10;27.10   condominium, cooperative, or planned community;&#10;27.11   (4) a general description of the common interest community, including, at a &#10;27.12   minimum, (i) the number of buildings, (ii) the number of dwellings per building, (iii) &#10;27.13   the type of construction, (iv) whether the common interest community involves new &#10;27.14   construction or rehabilitation, (v) whether any building was wholly or partially occupied, &#10;27.15   for any purpose, before it was added to the common interest community and the nature &#10;27.16   of the occupancy, and (vi) a general description of any roads, trails, or utilities that are &#10;27.17   located on the common elements and that the association or a master association will &#10;27.18   be required to maintain;&#10;27.19   (5) declarant's schedule of commencement and completion of construction of any &#10;27.20   buildings and other improvements that the declarant is obligated to build pursuant to &#10;27.21   section 515B.4-117;&#10;27.22   (6) any expenses or services, not reflected in the budget, that the declarant pays &#10;27.23   or provides, which may become a common expense; the projected common expense &#10;27.24   attributable to each of those expenses or services; and an explanation of declarant's limited &#10;27.25   assessment liability under section 515B.3-115<del>, subsection</del> (b);&#10;27.26   (7) any initial or special fee due from the purchaser to the declarant or the association &#10;27.27   at closing, together with a description of the purpose and method of calculating the fee;&#10;27.28   (8) identification of any liens, defects, or encumbrances which will continue to affect &#10;27.29   the title to a unit or to any real property owned by the association after the contemplated &#10;27.30   conveyance;&#10;27.31   (9) a description of any financing offered or arranged by the declarant;&#10;27.32   (10) a statement as to whether application has been made for any project approvals &#10;27.33   for the common interest community from the Federal National Mortgage Association &#10;27.34   (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing &#10;28.1    and Urban Development (HUD) or Department of Veterans Affairs (VA), and which, if &#10;28.2    any, such final approvals have been received;&#10;28.3    (11) the terms of any warranties provided by the declarant, including copies of &#10;28.4    sections 515B.4-112 through 515B.4-115, and any other applicable statutory warranties, &#10;28.5    and a statement of any limitations on the enforcement of the applicable warranties or on &#10;28.6    damages;&#10;28.7    (12) a statement that: (i) within <del>five</del> <ins>ten</ins> days after the receipt of a disclosure &#10;28.8    statement, a purchaser may cancel any contract for the purchase of a unit from a declarant; &#10;28.9    provided, that the right to cancel terminates upon the purchaser's voluntary acceptance &#10;28.10   of a conveyance of the unit from the declarant or by the purchaser agreeing to modify or &#10;28.11   waive the right to cancel in the manner provided by section 515B.4-106<del>, paragraph</del> (a); (ii) &#10;28.12   if a purchaser receives a disclosure statement more than <del>five</del> <ins>ten</ins> days before signing a &#10;28.13   purchase agreement, the purchaser cannot cancel the purchase agreement; and (iii) if a &#10;28.14   declarant obligated to deliver a disclosure statement fails to deliver a disclosure statement &#10;28.15   which substantially complies with this chapter to a purchaser to whom a unit is conveyed, &#10;28.16   the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);&#10;28.17   (13) a statement disclosing to the extent of the declarant's or an affiliate of a &#10;28.18   declarant's actual knowledge, after reasonable inquiry, any unsatisfied judgments or &#10;28.19   lawsuits to which the association is a party, and the status of those lawsuits which are &#10;28.20   material to the common interest community or the unit being purchased;&#10;28.21   (14) a statement (i) describing the conditions under which earnest money will be &#10;28.22   held in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) &#10;28.23   that the earnest money will be returned to the purchaser if the purchaser cancels the &#10;28.24   contract pursuant to section 515B.4-106, and (iii) setting forth the name and address &#10;28.25   of the escrow agent;&#10;28.26   (15) a detailed description of the insurance coverage provided by the association for &#10;28.27   the benefit of unit owners, including a statement as to which, if any, of the items referred &#10;28.28   to in section 515B.3-113, subsection (b), are insured by the association;&#10;28.29   (16) any current or expected fees or charges, other than assessments for common &#10;28.30   expenses, to be paid by unit owners for the use of the common elements or any other &#10;28.31   improvements or facilities;&#10;28.32   (17) the financial arrangements, including any contingencies, which have been made &#10;28.33   to provide for completion of all improvements that the declarant is obligated to build &#10;28.34   pursuant to section 515B.4-118, or a statement that no such arrangements have been made;&#10;28.35   (18) in a cooperative: (i) whether the unit owners will be entitled for federal and &#10;28.36   state tax purposes, to deduct payments made by the association for real estate taxes &#10;29.1    and interest paid to the holder of a security interest encumbering the cooperative; (ii) a &#10;29.2    statement as to the effect on the unit owners if the association fails to pay real estate taxes &#10;29.3    or payments due the holder of a security interest encumbering the cooperative; and (iii) the &#10;29.4    principal amount and a general description of the terms of any blanket mortgage, contract &#10;29.5    for deed, or other blanket security instrument encumbering the cooperative property;&#10;29.6    (19) a statement: (i) that real estate taxes for the unit or any real property owned by &#10;29.7    the association are not delinquent or, if there are delinquent real estate taxes, describing &#10;29.8    the property for which the taxes are delinquent, stating the amount of the delinquent &#10;29.9    taxes, interest and penalties, and stating the years for which taxes are delinquent, and &#10;29.10   (ii) setting forth the amount of real estate taxes, including the amount of any special &#10;29.11   assessment certified for payment with the real estate taxes, due and payable with respect to &#10;29.12   the unit in the year in which the disclosure statement is given, if real estate taxes have &#10;29.13   been separately assessed against the unit;&#10;29.14   (20) if the association or the purchaser of the unit will be a member of a master &#10;29.15   association, a statement to that effect, and all of the following information with &#10;29.16   respect to the master association: (i) a copy of the master declaration, the articles of &#10;29.17   incorporation, bylaws, and rules and regulations for the master association, together &#10;29.18   with any amendments thereto; (ii) the name, address and general description of the &#10;29.19   master association, including a general description of any other association, unit &#10;29.20   owners, or other persons which are or may become members; (iii) a description of any &#10;29.21   nonresidential use permitted on any property subject to the master association; (iv) a &#10;29.22   statement as to the estimated maximum number of associations, unit owners or other &#10;29.23   persons which may become members of the master association, and the degree and period &#10;29.24   of control of the master association by a declarant or other person; (v) a description of &#10;29.25   any facilities intended for the benefit of the members of the master association and &#10;29.26   not located on property owned or controlled by a member or the master association; &#10;29.27   (vi) the financial arrangements, including any contingencies, which have been made to &#10;29.28   provide for completion of the facilities referred to in subsection (v), or a statement that no &#10;29.29   arrangements have been made; (vii) any current balance sheet of the master association &#10;29.30   and a projected or current annual budget, as applicable, which budget shall include with &#10;29.31   respect to the master association those items in paragraph (23), clauses (i) through (iii), &#10;29.32   and the projected monthly common expense assessment for each type of unit, lot, or other &#10;29.33   parcel of real estate which is or is planned to be subject to assessment; (viii) a description &#10;29.34   of any expenses or services not reflected in the budget, paid for or provided by a declarant &#10;29.35   or a person executing the master declaration, which may become an expense of the master &#10;29.36   association in the future; (ix) a description of any powers delegated to and accepted by &#10;30.1    the master association pursuant to section 515B.2-121(f)(2); (x) identification of any &#10;30.2    liens, defects or encumbrances that will continue to affect title to property owned or &#10;30.3    operated by the master association for the benefit of its members; (xi) the terms of any &#10;30.4    warranties provided by any person for construction of facilities in which the members of &#10;30.5    the master association have or may have an interest, and any known defects in the facilities &#10;30.6    which would violate the standards described in section 515B.4-112(b); (xii) a statement &#10;30.7    disclosing, after inquiry of the master association, any unsatisfied judgments or lawsuits to &#10;30.8    which the master association is a party, and the status of those lawsuits which are material &#10;30.9    to the master association; (xiii) a description of any insurance coverage provided for the &#10;30.10   benefit of its members by the master association; and (xiv) any current or expected fees or &#10;30.11   charges, other than assessments by the master association, to be paid by members of the &#10;30.12   master association for the use of any facilities intended for the benefit of the members;&#10;30.13   (21) a statement as to whether the unit will be substantially completed at the time &#10;30.14   of conveyance to a purchaser, and if not substantially completed, who is responsible to &#10;30.15   complete and pay for the construction of the unit;&#10;30.16   (22) a copy of the declaration and any amendments thereto, (exclusive of the CIC &#10;30.17   plat), any other recorded covenants, conditions restrictions, and reservations affecting &#10;30.18   the common interest community; the articles of incorporation, bylaws and any rules &#10;30.19   or regulations of the association; any agreement excluding or modifying any implied &#10;30.20   warranties; any agreement reducing the statute of limitations for the enforcement of &#10;30.21   warranties; any contracts or leases to be signed by purchaser at closing; and a brief &#10;30.22   narrative description of any (i) contracts or leases that are or may be subject to cancellation &#10;30.23   by the association under section 515B.3-105 and (ii) any material agreements entered &#10;30.24   into between the declarant and a governmental entity that affect the common interest &#10;30.25   community; and&#10;30.26   (23) a balance sheet for the association, current within 90 days; a projected annual &#10;30.27   budget for the association; and a statement identifying the party responsible for the &#10;30.28   preparation of the budget. The budget shall assume that all units intended to be included &#10;30.29   in the common interest community, based upon the declarant's good faith estimate, have &#10;30.30   been subjected to the declaration; provided, that additional budget portrayals based upon &#10;30.31   a lesser number of units are permitted. The budget shall include, without limitation: (i) &#10;30.32   a statement of the amount included in the budget as a reserve for replacement; (ii) a &#10;30.33   statement of any other reserves; (iii) the projected common expense for each category of &#10;30.34   expenditures for the association; (iv) the projected monthly common expense assessment &#10;30.35   for each type of unit; and (v) a footnote or other reference to those components of the &#10;30.36   common interest community the maintenance, repair, or replacement of which the budget &#10;31.1    assumes will be funded by assessments under section 515B.3-115(e) rather than by &#10;31.2    assessments included in the association's annual budget, and a statement referencing &#10;31.3    section 515B.3-115(e)(1) or (2) as the source of funding. If, based upon the association's &#10;31.4    then current budget, the monthly common expense assessment for the unit at the time of &#10;31.5    conveyance to the purchaser is anticipated to exceed the monthly assessment stated in the &#10;31.6    budget, a statement to such effect shall be included.&#10;31.7    (b) A declarant shall promptly amend the disclosure statement to reflect any material &#10;31.8    change in the information required by this chapter.&#10;31.9    (c) The master association, within ten days after a request by a declarant, a holder &#10;31.10   of declarant rights, or a <del>purchaser</del><ins> buyer</ins> referred to in section 515B.4-101(e), or the &#10;31.11   authorized representative of any of them, shall furnish the information required to be &#10;31.12   provided by subsection (a)(20). A declarant or other person who provides information &#10;31.13   pursuant to subsection (a)(20) is not liable to the <del>purchaser</del><ins> buyer</ins> for any erroneous &#10;31.14   information if the declarant or other person: (i) is not an affiliate of or related in any &#10;31.15   way to a person authorized to appoint the master association board pursuant to section &#10;31.16   515B.2-121(c)(3), and (ii) has no actual knowledge that the information is incorrect.&#10;&#10;<a id="go.0.17.0"></a>31.17       Sec. 17. Minnesota Statutes 2004, section 518.191, subdivision 2, is amended to read:&#10;31.18       Subd. 2. <b>Required information.</b> A summary real estate disposition judgment &#10;31.19   must contain the following information: &#10;31.20   (1) the full caption and file number of the case and the title "Summary Real Estate &#10;31.21   Disposition Judgment"; &#10;31.22   (2) the dates of the parties' marriage and of the entry of the judgment and decree &#10;31.23   of dissolution; &#10;31.24   (3) the names of the parties' attorneys or if either or both appeared pro se; &#10;31.25   (4) the name of the judge and referee, if any, who signed the order for judgment &#10;31.26   and decree; &#10;31.27   (5) whether the judgment and decree resulted from a stipulation, a default, or a trial &#10;31.28   and the appearances at the default or trial; &#10;31.29   (6) <ins>if the judgment and decree resulted from a stipulation, whether the real property </ins>&#10;31.30   <ins>was described by a legal description; </ins>&#10;31.31   <ins>(7) if the judgment and decree resulted from a default, whether the petition contained </ins>&#10;31.32   <ins>the legal description of the property and whether disposition was made in accordance </ins>&#10;31.33   <ins>with the request for relief; </ins>&#10;31.34   <ins>(8) whether the summons and petition were served personally upon the respondent </ins>&#10;31.35   <ins>pursuant to the Rules of Civil Procedure, Rule 4.03(a), or section 543.19; </ins>&#10;32.1    <ins>(9) if the summons and petition were served on the respondent only by publication, </ins>&#10;32.2    <ins>the name of each legal newspaper and county in which the summons and petition were </ins>&#10;32.3    <ins>published and the dates of publications;</ins>&#10;32.4    <ins>(10) </ins>whether either party changed the party's name through the judgment and decree; &#10;32.5    <del>(7)</del> <ins>(11) </ins>the legal description of each parcel of real estate; &#10;32.6    <del>(8)</del> <ins>(12) </ins>the name or names of the persons awarded an interest in each parcel of real &#10;32.7    estate and a description of the interest awarded; &#10;32.8    <del>(9)</del> <ins>(13) </ins>liens, mortgages, encumbrances, or other interests in the real estate &#10;32.9    described in the judgment and decree; and &#10;32.10   <del>(10)</del> <ins>(14) </ins>triggering or contingent events set forth in the judgment and decree &#10;32.11   affecting the disposition of each parcel of real estate.&#10;&#10;<a id="go.0.18.0"></a>32.12       Sec. 18. Minnesota Statutes 2004, section 518.191, is amended by adding a subdivision &#10;32.13   to read:&#10;32.14       <ins>Subd. 2a.</ins> <ins><b>Amended summary real estate disposition judgment.</b></ins> <ins>(a) On the </ins>&#10;32.15   <ins>court's own motion or on application by an interested person, the court shall issue an order </ins>&#10;32.16   <ins>authorizing the court administrator to issue an amended summary real estate disposition </ins>&#10;32.17   <ins>judgment to correct an erroneous legal description of real estate contained in the judgment </ins>&#10;32.18   <ins>and decree of dissolution.</ins>&#10;32.19   <ins>(b) An application to correct a legal description under this subdivision must contain:</ins>&#10;32.20   <ins>(1) the erroneous legal description contained in the judgment and decree;</ins>&#10;32.21   <ins>(2) the correct legal description of the real estate;</ins>&#10;32.22   <ins>(3) written evidence satisfactory to the court to show the correct legal description, or </ins>&#10;32.23   <ins>a request for an evidentiary hearing to produce evidence of the correct legal description; </ins>&#10;32.24   <ins>and</ins>&#10;32.25   <ins>(4) a proposed amended summary real estate disposition judgment.</ins>&#10;32.26   <ins>(c) The court shall consider an application under this subdivision on an expedited </ins>&#10;32.27   <ins>basis. The court's order must be based on the evidence provided in the application, the </ins>&#10;32.28   <ins>evidence produced at an evidentiary hearing, or the evidence already in the record of the </ins>&#10;32.29   <ins>proceeding. If the court is satisfied that an erroneous legal description should be corrected </ins>&#10;32.30   <ins>under this subdivision, the court may issue its order without a hearing or notice to any </ins>&#10;32.31   <ins>person. A filing fee is not required for an application under this subdivision. The court's </ins>&#10;32.32   <ins>order must be treated as an amendment of the court's findings of fact regarding the legal </ins>&#10;32.33   <ins>description of the property in question, without the need to amend the original judgment </ins>&#10;32.34   <ins>and decree. The court shall issue the order if the court specifically finds that the court </ins>&#10;32.35   <ins>had jurisdiction over the respondent in the dissolution proceeding and that the property </ins>&#10;33.1    <ins>was sufficiently identified in the original proceedings to prevent prejudice to the rights </ins>&#10;33.2    <ins>of either party to the dissolution and that the amendment will not prejudice their rights. </ins>&#10;33.3    <ins>The court's order is effective retroactive to the date of entry of the original judgment </ins>&#10;33.4    <ins>and decree of dissolution.</ins>&#10;33.5    <ins>(d) An amended summary real estate disposition judgment must be treated the same </ins>&#10;33.6    <ins>as the prior summary real estate disposition judgment for all purposes.</ins>&#10;33.7    <ins>(e) On request by any interested person, the court administrator shall provide a </ins>&#10;33.8    <ins>certified copy of an amended summary real estate disposition judgment showing the </ins>&#10;33.9    <ins>correct legal description of the real property affected by the judgment and decree.</ins>&#10;33.10   <ins>(f) This subdivision may not be used to add omitted property to a judgment and </ins>&#10;33.11   <ins>decree of dissolution, unless the court determines that the omitted property is an integral </ins>&#10;33.12   <ins>or appurtenant part of real property already properly included in the judgment and decree.</ins>&#10;&#10;<a id="go.0.19.0"></a>33.13       Sec. 19. Minnesota Statutes 2004, section 518.191, subdivision 4, is amended to read:&#10;33.14       Subd. 4. <b>Transfer of property.</b> The summary real estate disposition judgment &#10;33.15   operates as a conveyance and transfer of each interest in the real estate in the manner and &#10;33.16   to the extent described in the summary real estate disposition judgment.<ins> A summary real </ins>&#10;33.17   <ins>estate disposition judgment, or an amended summary real estate disposition judgment that </ins>&#10;33.18   <ins>supersedes an earlier judgment, is prima facie evidence of the facts stated in the summary </ins>&#10;33.19   <ins>real estate disposition judgment. A purchaser for value without notice of any defect in </ins>&#10;33.20   <ins>the dissolution proceedings may rely on a summary real estate disposition judgment or a </ins>&#10;33.21   <ins>later amended summary real estate disposition judgment to establish the facts stated in </ins>&#10;33.22   <ins>the judgment.</ins>&#10;&#10;<a id="go.0.20.0"></a>33.23       Sec. 20. Minnesota Statutes 2004, section 524.3-301, is amended to read:&#10;33.24   <b>524.3-301 INFORMAL PROBATE OR APPOINTMENT PROCEEDINGS; </b>&#10;33.25   <b>APPLICATION; CONTENTS.</b>&#10;33.26   An informal probate proceeding is an informal proceeding for the probate of &#10;33.27   decedent's will with or without an application for informal appointment. An informal &#10;33.28   appointment proceeding is an informal proceeding for appointment of a personal &#10;33.29   representative in testate or intestate estates. These proceedings may be combined in a &#10;33.30   single proceeding. Applications for informal probate or informal appointment shall &#10;33.31   be directed to the registrar, and verified by the applicant, in accordance with section  &#10;33.32   524.1-310, to be accurate and complete to the best of applicant's knowledge and belief &#10;33.33   as to the following information: &#10;34.1    (1) Every application for informal probate of a will or for informal appointment of &#10;34.2    a personal representative, other than a special or successor representative, shall contain &#10;34.3    the following:&#10;34.4    (i) a statement of the interest of the applicant;&#10;34.5    (ii) the name, <del>Social Security number,</del> birthdate, and date of death of the decedent, &#10;34.6    and the county and state of the decedent's domicile at the time of death, and the names and &#10;34.7    addresses of the spouse, children, heirs, and devisees and the ages of any who are minors &#10;34.8    so far as known or ascertainable with reasonable diligence by the applicant;&#10;34.9    (iii) if the decedent was not domiciled in the state at the time of death, a statement &#10;34.10   showing venue;&#10;34.11   (iv) a statement identifying and indicating the address of any personal representative &#10;34.12   of the decedent appointed in this state or elsewhere whose appointment has not been &#10;34.13   terminated;&#10;34.14   (v) a statement indicating whether the applicant has received a demand for notice, or &#10;34.15   is aware of any demand for notice of any probate or appointment proceeding concerning &#10;34.16   the decedent that may have been filed in this state or elsewhere.&#10;34.17   (2) An application for informal probate of a will shall state the following in addition &#10;34.18   to the statements required by (1):&#10;34.19   (i) that the original of the decedent's last will is in the possession of the court, or &#10;34.20   accompanies the application, or that an authenticated copy of a will probated in another &#10;34.21   jurisdiction accompanies the application;&#10;34.22   (ii) that the applicant, to the best of the applicant's knowledge, believes the will to &#10;34.23   have been validly executed;&#10;34.24   (iii) that after the exercise of reasonable diligence, the applicant is unaware of any &#10;34.25   instrument revoking the will, and that the applicant believes that the instrument which is &#10;34.26   the subject of the application is the decedent's last will;&#10;34.27   (iv) that the time limit for informal probate as provided in this article has not expired &#10;34.28   either because three years or less have passed since the decedent's death, or, if more than &#10;34.29   three years from death have passed, that circumstances as described by section  524.3-108 &#10;34.30   authorizing tardy probate have occurred. &#10;34.31   (3) An application for informal appointment of a personal representative to &#10;34.32   administer an estate under a will shall describe the will by date of execution and state &#10;34.33   the time and place of probate or the pending application or petition for probate. The &#10;34.34   application for appointment shall adopt the statements in the application or petition for &#10;34.35   probate and state the name, address and priority for appointment of the person whose &#10;34.36   appointment is sought.&#10;35.1    (4) An application for informal appointment of an administrator in intestacy shall &#10;35.2    state in addition to the statements required by (1):&#10;35.3    (i) that after the exercise of reasonable diligence, the applicant is unaware of any &#10;35.4    unrevoked testamentary instrument relating to property having a situs in this state under &#10;35.5    section  524.1-301, or, a statement why any such instrument of which the applicant may &#10;35.6    be aware is not being probated; &#10;35.7    (ii) the priority of the person whose appointment is sought and the names of any &#10;35.8    other persons having a prior or equal right to the appointment under section  524.3-203. &#10;35.9    (5) An application for appointment of a personal representative to succeed a personal &#10;35.10   representative appointed under a different testacy status shall refer to the order in the most &#10;35.11   recent testacy proceeding, state the name and address of the person whose appointment &#10;35.12   is sought and of the person whose appointment will be terminated if the application is &#10;35.13   granted, and describe the priority of the applicant.&#10;35.14   (6) An application for appointment of a personal representative to succeed a personal &#10;35.15   representative who has tendered a resignation as provided in section  524.3-610(c), or &#10;35.16   whose appointment has been terminated by death or removal, shall adopt the statements in &#10;35.17   the application or petition which led to the appointment of the person being succeeded &#10;35.18   except as specifically changed or corrected, state the name and address of the person who &#10;35.19   seeks appointment as successor, and describe the priority of the applicant. &#10;&#10;<a id="go.0.21.0"></a>35.20       Sec. 21. Minnesota Statutes 2004, section 524.3-715, is amended to read:&#10;35.21   <b>524.3-715 TRANSACTIONS AUTHORIZED FOR PERSONAL </b>&#10;35.22   <b>REPRESENTATIVES; EXCEPTIONS.</b>&#10;35.23   Except as restricted or otherwise provided by the will or by an order in a &#10;35.24   formal proceeding and subject to the priorities stated in section  524.3-902, a personal &#10;35.25   representative, acting reasonably for the benefit of the interested persons, may properly: &#10;35.26   (1) retain assets owned by the decedent pending distribution or liquidation including &#10;35.27   those in which the representative is personally interested or which are otherwise improper &#10;35.28   for trust investment;&#10;35.29   (2) receive assets from fiduciaries, or other sources;&#10;35.30   (3) perform, compromise or refuse performance of the decedent's contracts that &#10;35.31   continue as obligations of the estate, as the personal representative may determine under &#10;35.32   the circumstances. In performing enforceable contracts by the decedent to convey or lease &#10;35.33   land, the personal representative, among other possible courses of action, may:&#10;36.1    (i) execute and deliver a deed of conveyance for cash payment of all sums remaining &#10;36.2    due or the purchaser's note for the sum remaining due secured by a mortgage or deed of &#10;36.3    trust on the land; or&#10;36.4    (ii) deliver a deed in escrow with directions that the proceeds, when paid in &#10;36.5    accordance with the escrow agreement, be paid to the successors of the decedent, as &#10;36.6    designated in the escrow agreement;&#10;36.7    (4) satisfy written charitable pledges of the decedent irrespective of whether the &#10;36.8    pledges constituted binding obligations of the decedent or were properly presented as &#10;36.9    claims, if in the judgment of the personal representative the decedent would have wanted &#10;36.10   the pledges completed under the circumstances;&#10;36.11   (5) if funds are not needed to meet debts and expenses currently payable and are not &#10;36.12   immediately distributable, deposit or invest liquid assets of the estate, including moneys &#10;36.13   received from the sale of other assets, in federally insured interest-bearing accounts, &#10;36.14   readily marketable secured loan arrangements or other prudent investments which would &#10;36.15   be reasonable for use by trustees generally;&#10;36.16   (6) acquire or dispose of an asset, including land in this or another state, for cash or &#10;36.17   on credit, at public or private sale; and manage, develop, improve, exchange, partition, &#10;36.18   change the character of, or abandon an estate asset;&#10;36.19   (7) make ordinary or extraordinary repairs or alterations in buildings or other &#10;36.20   structures, demolish any improvements, raze existing or erect new party walls or buildings;&#10;36.21   (8) subdivide, develop or dedicate land to public use; make or obtain the vacation of &#10;36.22   plats and adjust boundaries; or adjust differences in valuation on exchange or partition &#10;36.23   by giving or receiving considerations; or dedicate easements to public use without &#10;36.24   consideration;&#10;36.25   (9) enter for any purpose into a lease as lessor or lessee, with or without option to &#10;36.26   purchase or renew, for a term within or extending beyond the period of administration;&#10;36.27   (10) enter into a lease or arrangement for exploration and removal of minerals or &#10;36.28   other natural resources or enter into a pooling or unitization agreement;&#10;36.29   (11) abandon property when, in the opinion of the personal representative, it is &#10;36.30   valueless, or is so encumbered, or is in condition that it is of no benefit to the estate;&#10;36.31   (12) vote stocks or other securities in person or by general or limited proxy;&#10;36.32   (13) pay calls, assessments, and other sums chargeable or accruing against or on &#10;36.33   account of securities, unless barred by the provisions relating to claims;&#10;36.34   (14) hold a security in the name of a nominee or in other form without disclosure of &#10;36.35   the interest of the estate but the personal representative is liable for any act of the nominee &#10;36.36   in connection with the security so held;&#10;37.1    (15) insure the assets of the estate against damage, loss and liability and the personal &#10;37.2    representative against liability as to third persons;&#10;37.3    (16) borrow money with or without security to be repaid from the estate assets or &#10;37.4    otherwise; and advance money for the protection of the estate;&#10;37.5    (17) effect a fair and reasonable compromise with any debtor or obligor, or extend, &#10;37.6    renew or in any manner modify the terms of any obligation owing to the estate. The &#10;37.7    personal representative on holding a mortgage, pledge or other lien upon property of &#10;37.8    another person may, in lieu of foreclosure, accept a conveyance or transfer of encumbered &#10;37.9    assets from the owner thereof in satisfaction of the indebtedness secured by lien;&#10;37.10   (18) pay in compliance with section  524.3-805, but without the presentation of &#10;37.11   a claim, the reasonable and necessary last illness expenses of the decedent (except as &#10;37.12   provided in section  524.3-806 (a)), reasonable funeral expenses, debts and taxes with &#10;37.13   preference under federal or state law, and other taxes, assessments, compensation of the &#10;37.14   personal representative and the personal representative's attorney, and all other costs and &#10;37.15   expenses of administration although the same may be otherwise barred under section  &#10;37.16   524.3-803; &#10;37.17   (19) sell or exercise stock subscription or conversion rights; consent, directly &#10;37.18   or through a committee or other agent, to the reorganization, consolidation, merger, &#10;37.19   dissolution, or liquidation of a corporation or other business enterprise;&#10;37.20   (20) allocate items of income or expense to either estate income or principal, as &#10;37.21   permitted or provided by law;&#10;37.22   (21) employ persons, including attorneys, auditors, investment advisors, or agents, &#10;37.23   even if they are associated with the personal representative, to advise or assist the personal &#10;37.24   representative in the performance of administrative duties; act without independent &#10;37.25   investigation upon their recommendations; and instead of acting personally, employ one &#10;37.26   or more agents to perform any act of administration, whether or not discretionary;&#10;37.27   (22) prosecute or defend claims, or proceedings in any jurisdiction for the protection &#10;37.28   of the estate and of the personal representative in the performance of duties;&#10;37.29   (23) sell, mortgage, or lease any real or personal property of the estate or any interest &#10;37.30   therein<ins>, including the homestead, exempt or otherwise, </ins> for cash, credit, or for part cash &#10;37.31   and part credit, <del>and</del> with or without security for unpaid balances, <del>provided, however,</del><ins> </ins>&#10;37.32   <ins>and without the consent of any devisee or heir unless the property has been specifically </ins>&#10;37.33   <ins>devised to a devisee or heir by decedent's will, except </ins> that the homestead of a decedent &#10;37.34   when the spouse takes any interest therein shall not be sold, mortgaged or leased unless &#10;37.35   the written consent of the spouse has been obtained;&#10;38.1    (24) continue any unincorporated business or venture in which the decedent was &#10;38.2    engaged at the time of death (i) in the same business form for a period of not more &#10;38.3    than four months from the date of appointment of a general personal representative if &#10;38.4    continuation is a reasonable means of preserving the value of the business including good &#10;38.5    will, (ii) in the same business form for any additional period of time that may be approved &#10;38.6    by order of the court in a formal proceeding to which the persons interested in the estate &#10;38.7    are parties; or (iii) throughout the period of administration if the business is incorporated &#10;38.8    by the personal representative and if none of the probable distributees of the business who &#10;38.9    are competent adults object to its incorporation and retention in the estate;&#10;38.10   (25) incorporate any business or venture in which the decedent was engaged at &#10;38.11   the time of death;&#10;38.12   (26) provide for exoneration of the personal representative from personal liability in &#10;38.13   any contract entered into on behalf of the estate;&#10;38.14   (27) satisfy and settle claims and distribute the estate as provided in this chapter;&#10;38.15   (28) foreclose a mortgage, lien, or pledge or collect the debts secured thereby, or &#10;38.16   complete any such proceeding commenced by the decedent;&#10;38.17   (29) exercise all powers granted to guardians and conservators by sections  524.5-101 &#10;38.18   to  524.5-502. &#10;&#10;<a id="go.0.22.0"></a>38.19       Sec. 22. Minnesota Statutes 2004, section 524.3-803, is amended to read:&#10;38.20   <b>524.3-803 LIMITATIONS ON PRESENTATION OF CLAIMS.</b>&#10;38.21   (a) All claims as defined in section  524.1-201<del>(4)</del> <ins> (6), </ins>against a decedent's estate &#10;38.22   which arose before the death of the decedent, including claims of the state and any &#10;38.23   subdivision thereof, whether due or to become due, absolute or contingent, liquidated or &#10;38.24   unliquidated, if not barred earlier by other statute of limitations, are barred against the &#10;38.25   estate, the personal representative, and the heirs and devisees of the decedent, unless &#10;38.26   presented as follows: &#10;38.27   (1) in the case of a creditor who is only entitled, under the United States Constitution &#10;38.28   and under the Minnesota Constitution, to notice by publication under section  524.3-801, &#10;38.29   within four months after the date of the court administrator's notice to creditors which &#10;38.30   is subsequently published pursuant to section  524.3-801; &#10;38.31   (2) in the case of a creditor who was served with notice under section  524.3-801<del>,</del> &#10;38.32   <del>paragraph</del> (c), within the later to expire of four months after the date of the first publication &#10;38.33   of notice to creditors or one month after the service; &#10;38.34   (3) within the later to expire of one year after the decedent's death, or one year after &#10;38.35   June 16, 1989, whether or not notice to creditors has been published or served under &#10;39.1    section  524.3-801, provided, however, that in the case of a decedent who died before June &#10;39.2    16, 1989, no claim which was then barred by any provision of law may be deemed to have &#10;39.3    been revived by the amendment of this section. &#10;39.4    (b) All claims against a decedent's estate which arise at or after the death of the &#10;39.5    decedent, including claims of the state and any subdivision thereof, whether due or to &#10;39.6    become due, absolute or contingent, liquidated or unliquidated, are barred against the &#10;39.7    estate, the personal representative, and the heirs and devisees of the decedent, unless &#10;39.8    presented as follows:&#10;39.9    (1) a claim based on a contract with the personal representative, within four months &#10;39.10   after performance by the personal representative is due;&#10;39.11   (2) any other claim, within four months after it arises.&#10;39.12   (c) Nothing in this section affects or prevents:&#10;39.13   (1) any proceeding to enforce any mortgage, pledge, or other lien upon property &#10;39.14   of the estate;&#10;39.15   (2) any proceeding to establish liability of the decedent or the personal representative &#10;39.16   for which there is protection by liability insurance, to the limits of the insurance protection &#10;39.17   only;&#10;39.18   (3) the presentment and payment at any time within one year after the decedent's &#10;39.19   death of any claim arising before the death of the decedent that is referred to in section  &#10;39.20   524.3-715, clause (18), although the same may be otherwise barred under this section; or &#10;39.21   (4) the presentment and payment at any time before a petition is filed in compliance &#10;39.22   with section  524.3-1001 or  524.3-1002 or a closing statement is filed under section  &#10;39.23   524.3-1003, of: &#10;39.24   (i) any claim arising after the death of the decedent that is referred to in section  &#10;39.25   524.3-715, clause (18), although the same may be otherwise barred hereunder; &#10;39.26   (ii) any other claim, including claims subject to clause (3), which would otherwise be &#10;39.27   barred hereunder, upon allowance by the court upon petition of the personal representative &#10;39.28   or the claimant for cause shown on notice and hearing as the court may direct.&#10;&#10;<a id="go.0.23.0"></a>39.29       Sec. 23. Minnesota Statutes 2005 Supplement, section 548.27, is amended to read:&#10;39.30   <b>548.27 FILING AND STATUS OF FOREIGN JUDGMENTS.</b>&#10;39.31   <del>(a)</del> A certified copy of any foreign judgment may be filed in the office of the court &#10;39.32   administrator of any district court of this state. <del>Subject to paragraph (b),</del> The court &#10;39.33   administrator shall treat the foreign judgment in the same manner as a judgment of &#10;39.34   any district court or the Supreme Court of this state<del>, and</del><ins>. The time period provided in </ins>&#10;39.35   <ins>section 548.09 for the continuation of the lien on real property, the rate of interest accrual </ins>&#10;40.1    <ins>provided in section 549.09, the time period provided in section 550.01 for the enforcement </ins>&#10;40.2    <ins>of the judgment, and the requirements of sections 508.63 and 508A.63 apply to foreign </ins>&#10;40.3    <ins>judgments filed pursuant to this section. For purposes of sections 548.09, 549.09, 550.01, </ins>&#10;40.4    <ins>508.63, and 508A.63, the date of entry of a foreign judgment is the original date of entry </ins>&#10;40.5    <ins>in the foreign jurisdiction.</ins> Upon the filing of a certified copy of a foreign judgment in &#10;40.6    the office of the court administrator of district court of a county, it may not be filed in &#10;40.7    another district court in the state. A judgment so filed has the same effect and is subject to &#10;40.8    the same procedures, defenses and proceedings for reopening, vacating, or staying as a &#10;40.9    judgment of a district court or the Supreme Court of this state, and may be enforced or &#10;40.10   satisfied in like manner.&#10;40.11   <del>(b) If the creditor wants the foreign state's life span or interest rate applied to the </del>&#10;40.12   <del>judgment, the creditor or creditor's attorney must file an affidavit attesting to the foreign </del>&#10;40.13   <del>state's life span or interest rate, and a subsequent affidavit each time the interest rate or life </del>&#10;40.14   <del>span changes. Absent such an affidavit, Minnesota's life span and interest rate shall be </del>&#10;40.15   <del>applied to the judgment.</del>&#10;&#10;<a id="go.0.24.0"></a>40.16       Sec. 24. <ins><b>APPLICABILITY; TRANSITION PROVISIONS.</b></ins>&#10;40.17   <ins>Section 21 applies to every conveyance by a personal representative made before, </ins>&#10;40.18   <ins>on, or after the effective date of this section, except that it does not affect an action or </ins>&#10;40.19   <ins>proceeding that is:</ins>&#10;40.20   <ins>(1) pending on the effective date of section 21 involving the validity of the </ins>&#10;40.21   <ins>conveyance; or </ins>&#10;40.22   <ins>(2) commenced prior to February 1, 2007, if a notice of the pendency of the action </ins>&#10;40.23   <ins>or proceeding is recorded before February 1, 2007, in the office of the county recorder </ins>&#10;40.24   <ins>or registrar of titles of the county in which the real property affected by the action or </ins>&#10;40.25   <ins>proceeding is located.</ins>&#10;