2002 Minnesota Statutes

     515B.4-102 Disclosure statement; general provisions. 

    (a) A disclosure statement shall fully and accurately 
 disclose: 

    (1) the name and, if available, the number of the common 
 interest community; 

    (2) the name and principal address of the declarant; 

    (3) the number of units in the common interest community 
 and a statement that the common interest community is either a 
 condominium, cooperative, or planned community; 

    (4) a general description of the common interest community, 
 including, at a minimum, (i) the number of buildings, (ii) the 
 number of dwellings per building, (iii) the type of 
 construction, (iv) whether the common interest community 
 involves new construction or rehabilitation, (v) whether any 
 building was wholly or partially occupied, for any purpose, 
 before it was added to the common interest community and the 
 nature of the occupancy, and (vi) a general description of any 
 roads, trails, or utilities that are located on the common 
 elements and that the association or a master association will 
 be required to maintain; 

    (5) declarant's schedule of commencement and completion of 
 construction of any buildings and other improvements that the 
 declarant is obligated to build pursuant to section 515B.4-117; 

    (6) any expenses or services, not reflected in the budget, 
 that the declarant pays or provides, which may become a common 
 expense; the projected common expense attributable to each of 
 those expenses or services; and an explanation of declarant's 
 limited assessment liability under section 515B.3-115, 
 subsection (b); 

    (7) any initial or special fee due from the purchaser to 
 the declarant or the association at closing, together with a 
 description of the purpose and method of calculating the fee; 

    (8) identification of any liens, defects, or encumbrances 
 which will continue to affect the title to a unit or to any real 
 property owned by the association after the contemplated 
 conveyance; 

    (9) a description of any financing offered or arranged by 
 the declarant; 

    (10) a statement as to whether application has been made 
 for any project approvals for the common interest community from 
 the Federal National Mortgage Association (FNMA), Federal Home 
 Loan Mortgage Corporation (FHLMC), Department of Housing and 
 Urban Development (HUD) or Department of Veterans Affairs (VA), 
 and which, if any, such final approvals have been received; 

    (11) the terms of any warranties provided by the declarant, 
 including copies of chapter 327A, and sections 515B.4-112 
 through 515B.4-115, and a statement of any limitations on the 
 enforcement of warranties or on damages; 

    (12) a statement that:  (i) within ten days after the 
 receipt of a disclosure statement, a purchaser may cancel any 
 contract for the purchase of a unit from a declarant; provided, 
 that the right to cancel terminates upon the purchaser's 
 voluntary acceptance of a conveyance of the unit from the 
 declarant; (ii) if a purchaser receives a disclosure statement 
 more than ten days before signing a purchase agreement, the 
 purchaser cannot cancel the purchase agreement; and (iii) if a 
 declarant obligated to deliver a disclosure statement fails to 
 deliver a disclosure statement which substantially complies with 
 this chapter to a purchaser to whom a unit is conveyed, the 
 declarant shall be liable to the purchaser as provided in 
 section 515B.4-106(d); 

    (13) a statement disclosing to the extent of the 
 declarant's or an affiliate of a declarant's actual knowledge, 
 after reasonable inquiry, any unsatisfied judgments or lawsuits 
 to which the association is a party, and the status of those 
 lawsuits which are material to the common interest community or 
 the unit being purchased; 

    (14) a statement (i) describing the conditions under which 
 earnest money will be held in and disbursed from the escrow 
 account, as set forth in section 515B.4-109, (ii) that the 
 earnest money will be returned to the purchaser if the purchaser 
 cancels the contract pursuant to section 515B.4-106, and (iii) 
 setting forth the name and address of the escrow agent; 

    (15) a detailed description of the insurance coverage 
 provided by the association 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; 

    (16) any current or expected fees or charges, other than 
 assessments for common expenses, to be paid by unit owners for 
 the use of the common elements or any other improvements or 
 facilities; 

    (17) the financial arrangements, including any 
 contingencies, which have been made to provide for completion of 
 all improvements that the declarant is obligated to build 
 pursuant to section 515B.4-118, or a statement that no such 
 arrangements have been made; 

    (18) in a cooperative:  (i) whether the unit owners will be 
 entitled for federal and state tax purposes, to deduct payments 
 made by the association for real estate taxes and interest paid 
 to the holder of a security interest encumbering the 
 cooperative; and (ii) a statement as to the effect on the unit 
 owners if the association fails to pay real estate taxes or 
 payments due the holder of a security interest encumbering the 
 cooperative; 

    (19) a statement:  (i) that real estate taxes for the unit 
 or any real property owned by the association are not delinquent 
 or, if there are delinquent real estate taxes, describing the 
 property for which the taxes are delinquent, stating the amount 
 of the delinquent taxes, interest and penalties, and stating the 
 years for which taxes are delinquent, and (ii) setting forth the 
 amount of real estate taxes, including the amount of any special 
 assessment certified for payment with the real estate taxes, due 
 and payable with respect to the unit in the year in which the 
 disclosure statement is given, if real estate taxes have been 
 separately assessed against the unit; 

    (20) if the association or the purchaser of the unit will 
 be a member of a master association, a statement to that effect, 
 and all of the following information with respect to the master 
 association:  (i) a copy of the declaration, if any (other than 
 any CIC plat), the articles of incorporation, bylaws, and rules 
 and regulations for the master association, together with any 
 amendments thereto; (ii) the name, address and general 
 description of the master association, including a general 
 description of any other association, unit owners, or other 
 persons which are or may become members; (iii) a description of 
 any nonresidential use permitted on any property subject to the 
 master association; (iv) a statement as to the estimated maximum 
 number of associations, unit owners or other persons which may 
 become members of the master association, and the degree and 
 period of control of the master association by a declarant or 
 other person; (v) a description of any facilities intended for 
 the benefit of the members of the master association and not 
 located on property owned or controlled by a member; (vi) the 
 financial arrangements, including any contingencies, which have 
 been made to provide for completion of the facilities referred 
 to in subsection (v), or a statement that no arrangements have 
 been made; (vii) any current balance sheet of the master 
 association and a projected or current annual budget, as 
 applicable, which budget shall include with respect to the 
 master association those items in paragraph (23), clauses (i) 
 through (iv); (viii) a description of any expenses or services 
 not reflected in the budget, paid for or provided by a declarant 
 or a person executing the master declaration, which may become 
 an expense of the master association in the future; (ix) a 
 description of any powers delegated to and accepted by the 
 master association pursuant to section 515B.2-121(f)(2); (x) 
 identification of any liens, defects or encumbrances that will 
 continue to affect title to property owned or operated by the 
 master association for the benefit of its members; (xi) the 
 terms of any warranties provided by any person for construction 
 of facilities in which the members of the master association 
 have or may have an interest, and any known defects in the 
 facilities which would violate the standards described in 
 section 515B.4-112(b); (xii) a statement disclosing, to the 
 extent of the declarant's knowledge, after inquiry of the master 
 association, any unsatisfied judgments or lawsuits to which the 
 master association is a party, and the status of those lawsuits 
 which are material to the master association; (xiii) a 
 description of any insurance coverage provided for the benefit 
 of its members by the master association; and (xiv) any current 
 or expected fees or charges, other than assessments by the 
 master association, to be paid by members of the master 
 association for the use of any facilities intended for the 
 benefit of the members; 

    (21) a statement as to whether the unit will be 
 substantially completed at the time of conveyance to a 
 purchaser, and if not substantially completed, who is 
 responsible to complete and pay for the construction of the 
 unit; 

    (22) a copy of the declaration and any amendments thereto, 
 (exclusive of the CIC plat), any other recorded covenants, 
 conditions restrictions, and reservations affecting the common 
 interest community; the articles of incorporation, bylaws and 
 any rules or regulations of the association; any agreement 
 excluding or modifying any implied warranties; any agreement 
 reducing the statute of limitations for the enforcement of 
 warranties; any contracts or leases to be signed by purchaser at 
 closing; and a brief narrative description of any contracts or 
 leases that are or may be subject to cancellation by the 
 association under section 515B.3-105; and 

    (23) any current balance sheet for the association; a 
 projected annual budget for the association for the year in 
 which the first unit is conveyed to a purchaser, and thereafter 
 the current annual budget of the association; and a statement 
 identifying the party responsible for the preparation of the 
 budget.  The budget shall include, without limitation:  (i) a 
 statement of the amount included in the budget as a reserve for 
 maintenance, repair and replacement; (ii) a statement of any 
 other reserves; (iii) the projected common expense for each 
 category of expenditures for the association; and (iv) the 
 projected monthly common expense assessment for each type of 
 unit. 

    (b) A declarant shall promptly amend the disclosure 
 statement to reflect any material change in the information 
 required by this chapter. 

    (c) The master association, within ten days after a request 
 by a declarant, or any holder of declarant rights, or the 
 authorized representative of any of them, shall furnish the 
 information required to be provided by subsection (a)(20).  A 
 declarant or other person who provides information pursuant to 
 subsection (a)(20) is not liable to the purchaser for any 
 erroneous information if the declarant or other person:  (i) is 
 not an affiliate of or related in any way to a person authorized 
 to appoint the master association board pursuant to section 
 515B.2-121(c)(3), and (ii) has no actual knowledge that the 
 information is incorrect. 

    HIST: 1993 c 222 art 4 s 2; 1999 c 11 art 2 s 26