2001 Minnesota Statutes

     515B.4-107 Resale of units. 

    (a) In the event of a resale of a unit by a unit owner 
 other than a declarant, unless exempt under section 
 515B.4-101(c), the unit owner shall furnish to a purchaser, 
 before execution of any purchase agreement for a unit or 
 otherwise before conveyance, the following documents relating to 
 the association or to the master association, if applicable: 

    (1) copies of the declaration (other than any CIC plat), 
 the articles of incorporation and bylaws, any rules and 
 regulations, and any amendments thereto; 

    (2) the organizational and operating documents relating to 
 the master association, if any; and 

    (3) a resale disclosure certificate from the association 
 dated not more than 90 days prior to the date of the purchase 
 agreement or the date of conveyance, whichever is earlier, 
 containing the information set forth in subsection (b). 

    (b) The resale disclosure certificate must be in 
 substantially the following form: 

                    COMMON INTEREST COMMUNITY

                  RESALE DISCLOSURE CERTIFICATE

 Name of Common Interest Community:.............................. 

 Name of Association:............................................ 

 Address of Association:......................................... 

 Unit Number(s) (include principal unit and any garage, storage, 
 or other auxiliary unit(s)):.....................................

    The following information is furnished by the association 
 named above according to Minnesota Statutes, section 515B.4-107. 

    1.  There is no right of first refusal or other restraint 
 on the free alienability of the above unit(s) contained in the 
 declaration, bylaws, rules and regulations, or any amendment to 
 them, except as follows:........................................ 

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    2.  The following periodic installments of common expense 
 assessments and special assessments are payable with respect to 
 the above unit(s): 

      a.  Annual assessment 

          installments:      $.......   Due: .............

      b.  Special assessment

          installments:      $.......   Due: .............

      c.  Unpaid assessments, fines, or other charges:

            (1)   Annual          $.......

            (2)   Special         $.......

            (3)   Fines           $.......

            (4)   Other Charges   $.......

      d.  The association has/has not (strike one) approved

          a plan for levying certain common expense

          assessments against fewer than all the units

          according to Minnesota Statutes, section 515B.3-115,

          subsection (e).  If a plan is approved, a description

          of the plan is attached to this certificate.

    3.  In addition to the amounts due under paragraph 2, the 
 following additional fees or charges other than assessments are 
 payable by unit owners (include late payment charges, user fees, 

 etc.):..........................................................

 ................................................................

 ................................................................

    4.  There are no extraordinary expenditures approved by the 
 association, and not yet assessed, for the current and two 
 succeeding fiscal years, except as follows:..................... 

 ................................................................

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    5.  The association has reserved the following amounts for 
 maintenance, repair, or replacement:............................ 

 ................................................................

 ................................................................

 The following portions of these reserves are designated for the 
 following specified projects or uses:........................... 
 ................................................................ 

    6.  The following documents are furnished with this 
 certificate according to statute: 

      a.  The most recent regularly prepared balance sheet and

          income and expense statement of the association.

      b.  The current budget of the association.

    7.  There are no unsatisfied judgments against the 
 association, except as follows (identify creditor and amount):.. 

 ................................................................

 ................................................................

    8.  There are no pending lawsuits to which the association 
 is a party, except as follows (identify and summarize status):.. 

 ................................................................ 

 ................................................................

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    9.  Description of insurance coverages: 

    a.  The association provides the following insurance 
 coverage for the benefit of unit owners:  (Reference may be made 
 to applicable sections of the declaration or bylaws; however, 
 any additional coverages should be described in this space) 

 ................................................................
 ................................................................
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    b.  The following described fixtures, decorating items, or 
 construction items within the unit referred to in Minnesota 
 Statutes, section 515B.3-113, subsection (b), are insured by the 
 association (check as applicable):  

 ..._____Ceiling or wall finishing materials                     
 ..._____Floor coverings                                         
 ..._____Cabinetry                                               
 ..._____Finished millwork                                       
 ..._____Electrical or plumbing fixtures serving a single unit   
 ..._____Built-in appliances                                     
 ..._____Improvements and betterments as originally constructed  
 ..._____Additional improvements and betterments installed by
            unit owners                                          

    10.  The board of directors of the association has not 
 notified the unit owner (i) that any alterations or improvements 
 to the unit or to the limited common elements assigned to it 
 violate any provision of the declaration; or (ii) that the unit 
 is in violation of any governmental statute, ordinance, code, or 
 regulation, except as follows:...................................
 .................................................................

    11.  The remaining term of any leasehold estate affecting 
 the common interest community and the premises governing any 
 extension or renewal of it are as follows:...................... 

 ................................................................
 ................................................................

    12.  In addition to the above, the following matters 
 affecting the unit or the unit owner's obligations with respect 
 to the unit are deemed material. 

      I hereby certify that the foregoing information and
 statements are true and correct as of .............
                                         (Date)
                                     By:  .......................
                                     Title: .....................
                                     (Association representative)
                                     Address:....................
                                     Phone Number:...............

                             RECEIPT 

 In addition to the foregoing information furnished by the 
 association, the unit owner is obligated to furnish to the 
 purchaser before execution of any purchase agreement for a unit 
 or otherwise before conveyance, copies of the following 
 documents relating to the association or to the master 
 association (as applicable):  the declaration (other than any 
 common interest community plat), articles of incorporation, 
 bylaws, rules and regulations (if any), and any amendments to 
 these documents.  Receipt of the foregoing documents, and the 
 resale disclosure certificate, is acknowledged by the 
 undersigned buyer(s). 

      Dated:  ............        .........................

                                  (Buyer)

                                  .........................

                                  (Buyer)

    (c) If the association is subject to a master association 
 to which has been delegated the association's powers under 
 section 515B.3-102(a)(2), then the financial information 
 required to be disclosed under subsection (b) may be disclosed 
 on a consolidated basis. 

    (d) The association, within ten days after a request by a 
 unit owner, or the unit owner's authorized representative, shall 
 furnish the certificate required in subsection (a).  The 
 association may charge a reasonable fee for furnishing the 
 certificate and any association documents related thereto.  A 
 unit owner providing a certificate pursuant to subsection (a) is 
 not liable to the purchaser for any erroneous information 
 provided by the association and included in the certificate. 

    (e) A purchaser is not liable for any unpaid common expense 
 assessments, including special assessments, if any, not set 
 forth in the certificate required in subsection (a).  A 
 purchaser is not liable for the amount by which the annual or 
 special assessments exceed the amount of annual or special 
 assessments stated in the certificate for assessments payable in 
 the year in which the certificate was given, except to the 
 extent of any increases subsequently approved in accordance with 
 the declaration or bylaws.  A unit owner is not liable to a 
 purchaser for the failure of the association to provide the 
 certificate, or a delay by the association in providing the 
 certificate in a timely manner. 

    HIST: 1993 c 222 art 4 s 7; 1999 c 11 art 2 s 28; 2000 c 450 s 
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