1999 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 shall contain the 
 following information: 

    (1) a statement disclosing any right of first refusal or 
 other restraint on the free alienability of the unit contained 
 in the declaration, articles of incorporation, bylaws, rules and 
 regulations, or any amendment thereof; 

    (2) a statement setting forth:  

    (i) the installments of annual common expense assessments 
 payable with respect to the unit, and the payment schedule; 

    (ii) the installments of special common expense 
 assessments, if any, payable with respect to the unit, and the 
 payment schedule; and 

    (iii) any plan approved by the association for levying 
 certain common expense assessments against fewer than all the 
 units pursuant to section 515B.3-115, subsection (h), and the 
 amount and payment schedule for any such common expenses payable 
 with respect to the unit; 

    (3) a statement of any fees or charges other than 
 assessments payable by unit owners; 

    (4) a statement of any extraordinary expenditures approved 
 by the association, and not yet assessed, for the current and 
 two succeeding fiscal years; 

    (5) a statement of the amount of any reserves for 
 maintenance, repair or replacement and of any portions of those 
 reserves designated by the association for any specified 
 projects or uses; 

    (6) the most recent regularly prepared balance sheet and 
 income and expense statement of the association; 

    (7) the current budget of the association; 

    (8) a statement of any unsatisfied judgments against the 
 association and the status of any pending suits in which the 
 association is party; 

    (9) a detailed description of the insurance coverage 
 provided for the benefit of unit owners, including a statement 
 as to which, if any, of the items referred to in section 
 515B.3-113, subsection (b), are insured by the association; 

    (10) a statement as to whether the board has notified the 
 unit owner (i) that any alterations or improvements to the unit 
 or to the limited common elements assigned thereto violate any 
 provision of the declaration or (ii) that the unit is in 
 violation of any governmental statute, ordinance, code or 
 regulation; 

    (11) a statement of the remaining term of any leasehold 
 estate affecting the common interest community and the 
 provisions governing any extension or renewal thereof; and 

    (12) any other matters affecting the unit or the unit 
 owner's obligations with respect to the unit which the 
 association deems material. 

    (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