Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1994, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 388-S.F.No. 1691
An act relating to real property; clarifying and
making technical corrections to statutory provisions
relating to real property; allowing the examiner of
titles in Olmsted county to be compensated as are
examiners in counties of fewer than 75,000 population;
amending Minnesota Statutes 1992, sections 14.03,
subdivision 3; 83.26, subdivision 2; 500.19,
subdivision 4; 507.09; 507.332; 508.12, subdivision 1;
508.13; 508.23, subdivision 1; 508.35; 508.37,
subdivision 1a; 508.38; 508.45; 508.47, subdivision 5;
508.51; 508.52; 508.55; 508.58, subdivision 2; 508.68;
508.70; 508.71, subdivision 4; 508A.22, subdivision 1;
508A.35; 508A.38; 508A.45; 508A.47, subdivision 5;
508A.51; 508A.52; 508A.55; 508A.68; 508A.71,
subdivision 4; 559.21, subdivisions 3, 4, and 8; and
580.12; Minnesota Statutes 1993 Supplement, section
256B.0595, by adding a subdivision; 508.71,
subdivision 7; 515B.1-102; 515B.1-103; 515B.1-105;
515B.1-116; 515B.2-104; 515B.2-105; 515B.2-110;
515B.2-118; 515B.2-119; 515B.3-113; 515B.3-116; and
515B.3-117; proposing coding for new law in Minnesota
Statutes, chapters 508; and 508A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
CONVEYANCING, RECITALS, REDEMPTION
Section 1. Minnesota Statutes 1992, section 14.03,
subdivision 3, is amended to read:
Subd. 3. [RULEMAKING PROCEDURES.] The definition of a rule
in section 14.02, subdivision 4, does not include:
(1) rules concerning only the internal management of the
agency or other agencies that do not directly affect the rights
of or procedures available to the public;
(2) rules of the commissioner of corrections relating to
the placement and supervision of inmates serving a supervised
release term, the internal management of institutions under the
commissioner's control, and rules adopted under section 609.105
governing the inmates of those institutions;
(3) rules relating to weight limitations on the use of
highways when the substance of the rules is indicated to the
public by means of signs;
(4) opinions of the attorney general;
(5) the systems architecture plan and long-range plan of
the state education management information system provided by
section 121.931;
(6) the data element dictionary and the annual data
acquisition calendar of the department of education to the
extent provided by section 121.932;
(7) the occupational safety and health standards provided
in section 182.655; or
(8) revenue notices and tax information bulletins of the
commissioner of revenue; or
(9) uniform conveyancing forms adopted by the commissioner
of commerce under section 507.09.
Sec. 2. Minnesota Statutes 1993 Supplement, section
256B.0595, is amended by adding a subdivision to read:
Subd. 6. [NO BAD EFFECT ON REALTY CONVEYANCE,
ENCUMBRANCE.] This section does not invalidate or impair the
effectiveness of a conveyance or encumbrance of real estate.
Sec. 3. Minnesota Statutes 1992, section 500.19,
subdivision 4, is amended to read:
Subd. 4. [CONVERTING ESTATES CONVEYING INTEREST DIRECTLY.]
An owner (a) Subject to section 507.02 specifying when both
spouses must join in a conveyance of their homestead, one or
more owners of an interest in real estate may convey all or part
of the interest directly to that owner and one or more other
persons as joint tenants or as tenants in common or to one or
more of themselves, or to any combination of one or more of
themselves and other persons.
(b) Subject to section 507.02 specifying when both spouses
must join in a conveyance of their homestead, conveyances
between spouses are allowed under paragraph (a) to the same
extent as those between unmarried persons.
Sec. 4. Minnesota Statutes 1992, section 507.09, is
amended to read:
507.09 [FORMS APPROVED; AMENDMENTS.]
The several forms of deeds, mortgages, land contracts,
assignments, satisfactions, and other conveyancing instruments
prepared by the uniform conveyancing blanks commission and filed
by the commission with the secretary of state pursuant to Laws
1929, chapter 135, as amended by Laws 1931, chapter 34, are
approved and recommended for use in the state. Such forms shall
be kept on file with and be preserved by the commissioner of
commerce as a public record. The commissioner of commerce may
appoint an advisory task force on uniform conveyancing forms to
recommend to the commissioner of commerce amendments to existing
forms or the adoption of new forms. The task force shall
expire, and the terms, compensation, and removal of members
shall be as provided in section 15.059. The commissioner of
commerce may adopt amended or new forms consistent with the laws
of this state by rule in accordance with chapter 14 by complying
with the procedures in section 14.38, subdivision 7, clauses
(1), (2), and (3).
Sec. 5. Minnesota Statutes 1992, section 507.332, is
amended to read:
507.332 [RECITALS IN WRITTEN INSTRUMENTS NOT TO CONSTITUTE
NOTICE IN CERTAIN CASES WHETHER RECORDED RECITAL OF UNRECORDED
MORTGAGE IS NOTICE.]
Subdivision 1. [NO NOTICE.] Where an instrument affecting
the title to real property in this state recites the existence
of a mortgage against said real property or some part thereof,
where the instrument containing such recital either was recorded
prior to 1930 in the office of the county recorder of the county
where said real property or some part thereof is situated or was
filed prior to said date in a judicial proceeding effecting
(affecting) said real property or some part thereof in the
district court or probate court of such county, and where the
time of the maturity of the whole of the debt secured by said
mortgage is not clearly stated in said recital, then such
recital may be disregarded and shall not constitute notice of
said mortgage, either actual or constructive, to any subsequent
purchaser or incumbrancer of said real property or any part
thereof.
Nothing contained in this section shall affect actions now
pending or commenced within six months after the passage of Laws
1947, chapter 626, in any court of this state. A recital of the
existence of an unrecorded mortgage in an instrument:
(1) that affects title to real property and
(2) is recorded with the county recorder of the county
where the real property is located,
is not actual or constructive notice to a subsequent purchaser
or encumbrancer once five years have passed since the date of
the instrument containing the recital, unless the conditions in
subdivision 2 are met.
Subd. 2. [NOTICE.] If, in the circumstances described in
subdivision 1, an action to foreclose the unrecorded mortgage
was commenced and a notice of pendency or notice of lis pendens
was recorded during the five-year period, then, the recital is
actual or constructive notice of the unrecorded mortgage to a
subsequent purchaser or encumbrancer of the real property.
Subd. 3. [FORECLOSURE PERIOD UNAFFECTED.] This section
does not limit or extend the period, set out in section 541.03,
to bring an action to foreclose a mortgage.
Subd. 4. [NO EFFECT IF LIS PENDENS BEFORE MARCH 1995.]
This section does not affect a proceeding to foreclose a
mortgage pending on the effective date of the amendments made to
this section by this act, or to be commenced in a court of this
state if, before March 1, 1995, a notice of lis pendens has been
recorded in the office of the county recorder or filed in the
office of the registrar of titles.
Sec. 6. Minnesota Statutes 1992, section 580.12, is
amended to read:
580.12 [CERTIFICATE OF SALE; RECORD; EFFECT.]
When any sale of real property is made under a power of
sale contained in any mortgage, the officer shall make and
deliver to the purchaser a certificate, executed in the same
manner as a conveyance, containing:
(1) a description of the mortgage;
(2) a description of the property sold;
(3) the price paid for each parcel sold;
(4) the time and place of the sale, and the name of the
purchaser; and
(5) the time allowed by law for redemption, provided that
if the redemption period stated in the certificate is five weeks
and a longer redemption period was stated in the published
notice of foreclosure sale, a certified copy of the court order
entered under section 582.032, authorizing reduction of the
redemption period to five weeks, must be attached to the
certificate.
A certificate which states a five-week redemption period
must be recorded within ten days after the sale; any other
certificate must be recorded within 20 days after the sale.
When so recorded, upon expiration of the time for redemption,
the certificate shall operate as a conveyance to the purchaser
or the purchaser's assignee of all the right, title, and
interest of the mortgagor in and to the premises named therein
at the date of such mortgage, without any other conveyance. A
certificate must not contain a time allowed for redemption that
is less than the time specified by section 580.23, 582.032, or
582.32, whichever applies.
Sec. 7. [EFFECTIVE DATE.]
Section 2 is effective retroactive to July 1, 1993.
ARTICLE 2
CONTRACTS FOR DEED
Section 1. Minnesota Statutes 1992, section 559.21,
subdivision 3, is amended to read:
Subd. 3. For purposes of this section, the term "notice"
means a writing stating the information required in this
section, stating the name, address and telephone number of the
seller or of an attorney authorized by the seller to accept
payments pursuant to the notice and the fact that the person
named is authorized to receive the payments, stating a mailing
address and a street address or location where the seller or the
attorney will accept payment pursuant to the notice, and
including the following information in 12-point or larger
underlined upper-case type, or 8-point type if published, or in
large legible handwritten letters:
THIS NOTICE IS TO INFORM YOU THAT BY THIS NOTICE THE SELLER
HAS BEGUN PROCEEDINGS UNDER MINNESOTA STATUTES, SECTION 559.21,
TO TERMINATE YOUR CONTRACT FOR THE PURCHASE OF YOUR PROPERTY FOR
THE REASONS SPECIFIED IN THIS NOTICE. THE CONTRACT WILL
TERMINATE ..... DAYS AFTER (SERVICE OF THIS NOTICE UPON YOU)
(THE FIRST DATE OF PUBLICATION OF THIS NOTICE) (STRIKE ONE)
UNLESS BEFORE THEN:
(a) THE PERSON AUTHORIZED IN THIS NOTICE TO RECEIVE
PAYMENTS RECEIVES FROM YOU:
(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
(2) THE COSTS OF SERVICE (TO BE SENT TO YOU); PLUS
(3) $........... TO APPLY TO ATTORNEYS' FEES ACTUALLY
EXPENDED OR INCURRED; PLUS
(4) FOR CONTRACTS EXECUTED ON OR AFTER MAY 1, 1980, ANY
ADDITIONAL PAYMENTS BECOMING DUE UNDER THE CONTRACT TO THE
SELLER AFTER THIS NOTICE WAS SERVED ON YOU; PLUS
(5) FOR CONTRACTS, OTHER THAN EARNEST MONEY CONTRACTS,
PURCHASE AGREEMENTS, AND EXERCISED OPTIONS, EXECUTED ON OR AFTER
AUGUST 1, 1985, $.... (WHICH IS TWO PERCENT OF THE AMOUNT IN
DEFAULT AT THE TIME OF SERVICE OTHER THAN THE FINAL BALLOON
PAYMENT, ANY TAXES, ASSESSMENTS, MORTGAGES, OR PRIOR CONTRACTS
THAT ARE ASSUMED BY YOU); OR
(b) YOU SECURE FROM A COUNTY OR DISTRICT COURT AN ORDER
THAT THE TERMINATION OF THE CONTRACT BE SUSPENDED UNTIL YOUR
CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING OR
SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND
GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS
WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR CONTRACT
WILL TERMINATE AT THE END OF THE PERIOD AND YOU WILL LOSE ALL
THE MONEY YOU HAVE PAID ON THE CONTRACT; YOU WILL LOSE YOUR
RIGHT TO POSSESSION OF THE PROPERTY; YOU MAY LOSE YOUR RIGHT TO
ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE; AND YOU WILL
BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE,
CONTACT AN ATTORNEY IMMEDIATELY.
Sec. 2. Minnesota Statutes 1992, section 559.21,
subdivision 4, is amended to read:
Subd. 4. [CONTRARY CONTRACTUAL NOTICE; SERVICE;
REINSTATEMENT; TERMINATION.] (a) The notice required by this
section must be given notwithstanding any provisions in the
contract to the contrary, except that earnest money contracts,
purchase agreements, and exercised options that are subject to
this section may, unless by their terms they provide for a
longer termination period, be terminated on 30 days notice. The
notice must be served within the state in the same manner as a
summons in the district court, and outside of the state, in the
same manner, and without securing any sheriff's return of not
found, making any preliminary affidavit, mailing a copy of the
notice or doing any other preliminary act or thing whatsoever.
Service of the notice outside of the state may be proved by the
affidavit of the person making the same, made before an
authorized officer having a seal, and within the state by such
an affidavit or by the return of the sheriff of any county
therein.
(b) Three weeks published notice, and if the real estate
described in the contract is actually occupied, then in addition
thereto, the personal service of a copy of the notice within ten
days after the first date of publication of the notice, and in
like manner as the service of a summons in a civil action in the
district court, upon the person in possession of the real
estate, has the same effect as the personal service of the
notice upon the purchaser, or the purchaser's personal
representatives or assigns, either within or outside of the
state as provided for in this section. In case of service by
publication, the published notice shall comply with subdivision
3 and state that the purchaser, or the purchaser's personal
representatives or assigns, is allowed 90 days from and after
the first date of publication of the notice to comply with the
conditions of the contract, and state that the contract will
terminate 90 days after the first date of publication of the
notice, unless prior to the termination date the purchaser
complies with the notice. If a person to be served is a
resident individual who has departed from the state, or cannot
be found in the state; or is a nonresident individual or a
foreign corporation, partnership, or association, service may be
made by publication as provided in this paragraph. Three weeks
published notice has the same effect as personal service of the
notice. The published notice must comply with subdivision 3 and
state (1) that the person to be served is allowed 90 days after
the first date of publication of the notice to comply with the
conditions of the contract, and (2) that the contract will
terminate 90 days after the first date of publication of the
notice, unless before the termination date the purchaser
complies with the notice. If the real estate described in the
contract is actually occupied, then, in addition to publication,
a person in possession must be personally served, in like manner
as the service of a summons in a civil action in state district
court, within 30 days after the first date of publication of the
notice. If an address of a person to be served is known, then
within 30 days after the first date of publication of the notice
a copy of the notice must be mailed to the person's last known
address by first class mail, postage prepaid.
(c) The contract is reinstated if, within the time
mentioned, the person served:
(1) complies with the conditions in default;
(2) if subdivision 1d or 2a applies, makes all payments due
and owing to the seller under the contract through the date that
payment is made;
(3) pays the costs of service as provided in subdivision
1b, 1c, 1d, or 2a;
(4) if subdivision 2a applies, pays two percent of the
amount in default, not including the final balloon payment, any
taxes, assessments, mortgages, or prior contracts that are
assumed by the purchaser; and
(5) pays attorneys' fees as provided in subdivision 1b, 1c,
1d, or 2a.
(d) The contract is terminated if the provisions of
paragraph (c) are not met.
(e) In the event that the notice was not signed by an
attorney for the seller and the seller is not present in the
state, or cannot be found in the state, then compliance with the
conditions specified in the notice may be made by paying to the
court administrator of the district court in the county wherein
the real estate or any part thereof is situated any money due
and filing proof of compliance with other defaults specified,
and the court administrator of the district court shall be
deemed the agent of the seller for such purposes. A copy of the
notice with proof of service thereof, and the affidavit of the
seller, the seller's agent or attorney, showing that the
purchaser has not complied with the terms of the notice, may be
recorded with the county recorder, and is prima facie evidence
of the facts stated in it; but this section in no case applies
to contracts for the sale or conveyance of lands situated in
another state or in a foreign country. If the notice is served
by publication, the affidavit must state that the affiant
believes that the party to be served is not a resident of the
state, or cannot be found in the state, and either that the
affiant has mailed a copy of the notice by first class mail,
postage prepaid, to the party's last known address, or that such
address is not known to the affiant.
Sec. 3. Minnesota Statutes 1992, section 559.21,
subdivision 8, is amended to read:
Subd. 8. [ATTORNEY AS AGENT FOR SERVICE.] Any attorney
expressly authorized by the seller to receive payments in the
notice of termination under this section is designated as the
attorney who may receive service as agent for the seller of all
summons, complaints, orders, and motions made in conjunction
with an action by the purchaser to restrain the
termination. Service in the action may be made upon the seller
by mailing a copy of the process to the seller or to the
seller's attorney, by first class mail, postage prepaid, to the
address stated in the notice where payments will be accepted.
Sec 4. [EFFECTIVE DATE.]
This article is effective August 1, 1994, and applies to
notices first served or published on or after that date.
ARTICLE 3
REGISTERED PROPERTY
A
Section 1. Minnesota Statutes 1992, section 508.12,
subdivision 1, is amended to read:
Subdivision 1. [EXAMINER AND DEPUTY EXAMINER.] The judges
of the district court shall appoint a competent attorney in each
county within their respective districts to be an examiner of
titles and legal adviser to the registrar in said county, to
which examiner all applications to register title to land are
referred without further order, and may appoint attorneys to
serve as deputy examiners who shall act in the name of the
examiner and under the examiner's supervision and control, and
the deputy's acts shall be the acts of the examiners. The
examiner of titles and deputy examiners shall hold office
subject to the will and discretion of the district court by whom
appointed. The examiner's compensation and that of the
examiner's deputies shall be fixed and determined by the court
and paid in the same manner as the compensation of other county
employees is paid except that in all counties having fewer than
75,000 inhabitants, and in Stearns county and, Dakota county,
and Olmsted counties the fees and compensation of the examiners
for services as legal adviser to the registrar shall be
determined by the judges of the district court and paid in the
same manner as the compensation of other county employees is
paid, but in every other instance shall be paid by the person
applying to have the person's title registered or for other
action or relief which requires the services, certification or
approval of the examiner.
B
Sec. 2. Minnesota Statutes 1992, section 508.13, is
amended to read:
508.13 [REFERENCES TO EXAMINERS; POWERS; REPORTS.]
Immediately after the filing of the abstract of title, the
court shall enter an order referring the application to an
examiner of titles, the court administrator shall refer the file
to the examiner of titles, who shall proceed to examine into the
title of the land described in the application, and into the
truth of all matters set forth therein. The examiner shall
ascertain whether or not the land is occupied, and, if occupied,
shall ascertain the nature thereof, and by what right the
occupation is held. The examiner shall also ascertain whether
or not any judgments exist which may be a lien upon the land.
The examiner shall search all public records, and fully
investigate all facts pertaining to the title which may be
brought to the examiner's notice, and shall file in the case a
full report thereof, together with the examiner's opinion upon
the title. The court shall not be bound by any report of the
examiner of titles, but may require further or other proof. An
examiner of titles shall have full power to administer oaths and
examine witnesses concerning any matter involved in the
examiner's investigation of titles. When, in the opinion of the
examiner, the state has any interest in, or lien upon, the land,
the examiner shall state the nature and character thereof in the
examiner's report, and in such cases, the state shall be joined
as a party, and named in the summons as a party thereto, in
order that its interest, estate or lien may be defined and
preserved. The court administrator shall give notice to the
applicant of the filing of such report. If the report of the
examiner is adverse to the applicant, the applicant shall have a
reasonable time in which to proceed further, or to withdraw the
application. This election shall be made in writing and filed
with the court administrator. Examiners shall, upon the request
of the registrar, advise the registrar upon any act or duty
pertaining to the conduct of the office, or prepare the form of
any memorial to be made or entered by the registrar.
In all cases where under the provisions of this chapter
application is made to the court for any order or decree, the
court may refer the matter to the examiner of titles for hearing
and report in like manner as herein provided for the reference
of the initial application for registration.
C
Sec. 3. Minnesota Statutes 1992, section 508.23,
subdivision 1, is amended to read:
Subdivision 1. Every decree of registration shall bear the
date, hour, and minute of its entry and be signed by one of the
judges of the district court. It shall state the age of the
owner of the land whether the owner is 18 years of age or older,
and whether married, or unmarried, and, if married, the name of
the spouse; if the owner of the land is under disability any
legal incapacity, it shall state the nature thereof. It shall
contain an accurate description of the land as finally
determined by the court, and set forth the estate of the owner
and also, in such manner as to show their relative priority, all
particular estates, mortgages, easements, liens, attachments,
and other encumbrances, including spousal rights, if any, to
which the land or the owner's estate is subject, and any other
facts properly to be determined by the court. Immediately upon
the filing of the decree of registration, the court
administrator shall file a certified copy thereof with the
registrar.
Sec. 4. Minnesota Statutes 1992, section 508A.22,
subdivision 1, is amended to read:
Subdivision 1. [DIRECTIVE.] The examiner of titles, upon
being satisfied that the applicant is entitled to a CPT, but not
earlier than 20 days from the date of mailing of the notice
required by section 508A.13, shall issue a written directive to
the registrar of titles directing that the first CPT be issued
and entered in the name of the applicant, subject only to the
following: (a) the exceptions set out in section 508A.25; (b)
all outstanding rights, titles, estates, liens, and interests
set forth in the examiner's report; and (c) the rights of
persons in possession, if any, and any rights which would be
disclosed by a survey. The examiner's directive shall contain
an accurate description of the land and shall set forth the
address of the applicant and, if the applicant be an individual,
the applicant's age whether the applicant is 18 years of age or
older, and whether married or unmarried, and if married, the
name of the spouse; if the applicant is under disability any
legal incapacity, the nature of it shall be stated. From the
date of filing the examiner's directive with the registrar of
titles, all instruments affecting title to the land which are
registered shall be filed in the office of the registrar of
titles and be memorialized upon the CPT.
D
Sec. 5. [508.321] [APPEAL FROM REGISTRAR'S DECISIONS.]
If the registrar rejects a document for filing, a party in
interest may refer the matter to the examiner of titles for
review. The examiner of titles may approve the document for
filing by endorsing the words "Approved for Filing" on the
document. Upon approval, the registrar shall accept the
document for filing.
Sec. 6. [508A.321] [APPEAL FROM REGISTRAR'S DECISIONS.]
If the registrar rejects a document for filing, a party in
interest may refer the matter to the examiner of titles for
review. The examiner of titles may approve the document for
filing by endorsing the words "Approved for Filing" on the
document. Upon approval, the registrar shall accept the
document for filing.
E
Sec. 7. Minnesota Statutes 1992, section 508.35, is
amended to read:
508.35 [FORM OF CERTIFICATE.]
The certificate of title shall contain the name and
residence of the owner, a description of the land, and of the
estate of the owner therein, and shall by memorial contain a
description of all encumbrances, liens, and interests in which
the estate of the owner is subject. It shall state the owner's
age whether the owner is 18 years of age or older and, if under
disability any legal incapacity, the nature of it. It shall
also state whether or not the owner is married and, if married,
the name of the spouse. In case the land is held in trust or
subject to any condition or limitation, it shall state the
nature and character of it. It shall be substantially in the
following form:
CERTIFICATE OF TITLE
First certificate of title, pursuant to the order of the
district court, ............... judicial district, county of
................., and state of Minnesota, date................,
19.....
REGISTRATION
State of Minnesota )
) ss.
County of .................... )
This is to certify that ..............., of residing at
..............., in the .................... of
...................., county of ...................., and state
of ...................., is now the owner of an estate, to-wit,
......................... of and in the following described land
situated in the county of ............... and state of
Minnesota, to-wit, .........................
Subject to the encumbrances, liens, and interest noted by
the memorial underwritten or endorsed hereon; and subject to the
following rights or encumbrances subsisting, as provided in Laws
1905, chapter 305, section 24, namely:
(1) Liens, claims, or rights arising under the laws or the
Constitution of the United States, which the statutes of this
state cannot require to appear of record;
(2) Any real property tax or special assessment for which a
sale of the land has not been had at the date of the certificate
of title;
(3) Any lease for a period not exceeding three years, when
there is actual occupation of the premises under the lease;
(4) All rights in public highways upon the land;
(5) Such right of appeal or right to appear and contest the
application as is allowed by law;
(6) The rights of any person in possession under deed or
contract for deed from the owner of the certificate of title;
(7) Any outstanding mechanics lien rights which may exist
under sections 514.01 to 514.17.
That the said ................................ is of the
age of ............. years, is ................. married
....................., and is under
............................... disability.
That the said .......................... (is/is not) of the
age of 18 years or older, is under no legal incapacity except
......................... and is (single/married to
.........................), who (is/is not) of the age of 18
years or older and is under no legal incapacity except
.........................
In witness whereof, I have hereunto subscribed my name and
affixed the seal of my office, this ............... day of
..........., 19........
.............................................
Registrar of Titles, in and for the county of
..................... and State of Minnesota.
All certificates issued subsequent to the first certificate
of title shall be in like form except that they shall be
entitled "Transfer from number (here give the number of the next
previous certificate relating to the same land)," and shall also
contain the words "Originally registered (date, volume, and page
of registration)."
Sec. 8. Minnesota Statutes 1992, section 508A.35, is
amended to read:
508A.35 [FORMS OF CPT.]
The CPT shall contain the name and residence of the owner,
a description of the land and of the estate of the owner, and
shall by memorial contain a description of all encumbrances,
liens, and interests known to the owner to which the estate of
the owner is subject. It shall state the owner's age whether
the owner is 18 years of age or older and if under disability
any legal incapacity, the nature of it. It shall also state
whether or not the owner is married and if married, the name of
the spouse. In case the land is held in trust or subject to any
condition or limitation, it shall state the nature and character
of it. It shall be in substantially the following form:
CERTIFICATE OF POSSESSORY TITLE (CPT)
First Certificate of Possessory Title, pursuant to the
Directive of the Examiner of Titles, County of ..........., and
State of Minnesota, date .................., 19...
Registration of Possessory Title
State of Minnesota )
)ss
County of ...............)
This is to certify that ........................, of the
.................. of ................ County of .............,
and State of ......................, is now the owner of a fee
simple estate, to-wit, ........................................
Subject to the encumbrances, liens, and interests noted by the
memorial underwritten or endorsed hereon; and subject to the
following rights or encumbrances subsisting, namely:
(1) Liens, claims, or rights arising under the laws of the
Constitution of the United States, which the statutes of this
state cannot require to appear of record;
(2) Any real property tax or special assessment for which a
sale of the land has not been had at the date of the CPT;
(3) Any lease for a period not exceeding three years, when
there is actual occupation of the premises under the lease;
(4) All rights in public highways upon the land;
(5) The rights, titles, estates, liens, and interests of
any person who has acquired an interest set forth in the
Examiner's Supplemental Directive issued pursuant to section
508A.22, subdivision 2;
(6) The rights of any person in possession under deed or
contract for deed from the owner of the CPT;
(7) Any claims that may be made pursuant to section 508A.17
within five years from the date the Examiner's Supplemental
Directive is filed on the CPT; and
(8) Any outstanding mechanics lien rights which may exist
under sections 514.01 to 514.17.
In witness whereof, I have hereunto subscribed my name and
affixed the seal of my office, this ............ day of
...................., 19...
...................................
Registrar of Titles, in and for the
County of ..................... and
State of Minnesota.
All CPTs issued subsequent to the first shall be in like
form except that they shall be entitled "Transfer from number
(here give the number of the next previous CPT relating to the
same land)," and shall also contain the words "Originally
registered (date, volume, and page of registration)."
CPTs shall be indexed and maintained in the same manner as
provided for certificates of title under chapter 508.
F
Sec. 9. Minnesota Statutes 1992, section 508.37,
subdivision 1a, is amended to read:
Subd. 1a. [BOOKS.] The registrar shall likewise keep tract
indexes, in which the registrar shall enter an accurate
description of all registered land, together with the names of
the respective owners thereof, and a reference to the volume and
page of the register of titles in which the same is
registered number of the certificate of title. The registrar
shall keep two books, to be known as the grantors' and grantees'
reception books respectively.
The grantors' reception book shall be a grantors' index of
instruments filed with the registrar. Each page shall be
divided into columns. The surname and given name of the grantor
shall be entered under the first column and under the succeeding
columns there shall be entered respectively the name of the
grantee; the date of registration, specifying the month, day,
year and hour and whether ante meridian or post meridian; the
number of the instrument; the book and page of the register of
titles where the land is registered; the type of instrument; and
a description of the property by lot or section, block or
township, range, addition and other pertinent information.
The grantees' reception book shall be a grantees' index of
instruments filed with the registrar. Each page shall be
divided into columns. The surname and given name of the grantee
shall be entered under the first column and under the succeeding
columns there shall be entered respectively the name of the
grantor; the date of registration, specifying the month, day,
year and hour and whether ante meridian or post meridian; the
number of the instrument; the book and page of the register of
titles where the land is registered; the type of instrument; and
a description of the property by lot or section, block or
township, range, addition and other pertinent information.
G
Sec. 10. Minnesota Statutes 1992, section 508.38, is
amended to read:
508.38 [FORMS OF RECORDS ADOPTED.]
Every instrument affecting the title to land, filed with
the registrar, shall be numbered by the registrar consecutively,
and the registrar shall endorse upon the same the number
thereof, together with the date, hour, and minute when the same
is filed, and a reference to its proper certificate of title.
Every such instrument shall be retained by the registrar and
regarded as registered from the time of filing except that such
instruments may be copied or reproduced as provided by section
15.17, as amended, and the copies or reproductions thereof
substituted for the originals with the equal force and effect of
the same, which originals may be then destroyed as provided by
said section 15.17. When the memorial of any instrument is made
upon any certificate, the date, number, and time of filing
thereof shall likewise be endorsed upon such certificate. All
records and papers relating to registered land in the office of
the registrar, shall be open to the inspection of the public at
such times and under such conditions as the court may prescribe.
Duplicates of all instruments, voluntary or involuntary, filed
and registered with the registrar, may be presented with the
originals, and shall thereupon be attested and sealed by the
registrar, and endorsed with the file number, and other
memoranda on the originals, and may be attested and sealed by
the registrar, and returned to the person presenting the same.
The registrar shall furnish certified copies of the instruments
filed and registered in the registrar's office, upon payment of
a fee as provided in section 357.18. The court shall adopt
general forms of memorials and notations to be used by the
registrars in registering the common forms of conveyance and
other instruments.
Sec. 11. Minnesota Statutes 1992, section 508A.38, is
amended to read:
508A.38 [FORMS OF RECORDS ADOPTED.]
Every instrument affecting the title to land, filed with
the registrar pursuant to sections 508A.01 to 508A.85, shall be
numbered by the registrar who shall endorse upon it the number
of it, together with the date, hour, and minute when the same is
filed, and a reference to its proper CPT. Every instrument
shall be retained by the registrar and regarded as registered
from the time of filing except that the instruments may be
copied or reproduced as provided by section 15.17, and the
copies or reproductions of them substituted for the originals
with the equal force and effect as they have. The originals may
be then destroyed as provided by section 15.17. When the
memorial of any instrument is made upon any CPT, the date,
number, and time of filing of it shall also be endorsed upon the
CPT. All records and papers relating to registered land in the
office of the registrar shall be open to the inspection of the
public at the times and under the conditions as the court may
prescribe. Duplicates of all instruments, voluntary or
involuntary, filed and registered with the registrar, may be
presented with the originals, and shall thereupon be attested
and sealed by the registrar, and endorsed with the file number,
and other memoranda on the originals, and may be attested and
sealed by the registrar, and returned to the person presenting
it. The registrar shall furnish certified copies of the
instruments filed and registered in the registrar's office, upon
payment of a fee as provided in section 357.18. The court shall
adopt general forms of memorials and notations to be used by the
registrars in registering the common forms of conveyance and
other instruments.
H
Sec. 12. Minnesota Statutes 1992, section 508.45, is
amended to read:
508.45 [COURT MAY ORDER DUPLICATE CERTIFICATE PRODUCED.]
If the registrar of titles is requested to enter a new
certificate in pursuance of an instrument which purports to be
executed by the registered owner, or by reason of any instrument
or proceeding which divests the title of the registered owner
against the registered owner's consent, and the outstanding
owner's duplicate certificate is not presented for cancellation
when such request is made, the registrar of titles shall not
enter a new certificate, until authorized so to do by order of
the district court. The person who claims to be entitled
thereto may make application therefor to the district court, and
after due notice and hearing, the court may order the registered
owner, or any person withholding the duplicate certificate, to
surrender it, and direct the entry of a new certificate upon
such surrender. If the person withholding the duplicate
certificate is not amenable to the process of the court, or if
for any reason the outstanding owner's duplicate certificate
cannot be delivered up, the court may by decree annul it, and
order a new certificate of title to be entered.
Sec. 13. Minnesota Statutes 1992, section 508A.45, is
amended to read:
508A.45 [COURT MAY ORDER DUPLICATE CPT PRODUCED.]
If the registrar of titles is requested to enter a new CPT
in pursuance of an instrument which purports to be executed by
the registered owner, or by reason of any instrument or
proceeding which divests the title of the registered owner
against the registered owner's consent, and the outstanding
owner's duplicate CPT is not presented for cancellation when the
request is made, the registrar of titles shall not enter a new
CPT until authorized so to do by order of the district court.
The person who claims to be entitled to it may apply for it to
the district court, and after due notice and hearing, the court
may order the registered owner, or any person withholding the
duplicate CPT, to surrender it, and direct the entry of a new
CPT upon the surrender. If the person withholding the duplicate
CPT is not amenable to the process of the court, or if for any
reason the outstanding owner's duplicate CPT cannot be delivered
up, the court may by decree annul it, and order a new CPT to be
entered.
I
Sec. 14. Minnesota Statutes 1992, section 508.47,
subdivision 5, is amended to read:
Subd. 5. [FILING REGISTERED LAND SURVEY.] The registered
land survey shall be filed in the office of the registrar of
titles, who shall number each registered land survey, the
numbers to run consecutively beginning with the number "1." One
copy of each registered land survey shall be retained by the
registrar of titles as a master copy, one copy filed in a
registered land survey register in the registrar's office and
made available to the public, and one copy delivered to the
county auditor who may thereafter refer to it in connection with
the tax descriptions when convenient. Thereafter the tracts in
each registered land survey shall be known as Tract .....,
registered land survey No. ...., files of registrar of titles,
county of ....., and all conveyances shall describe said
property accordingly; but the registrar shall not accept for
filing and registration any conveyance of unplatted registered
land if the land is described in the conveyance according to a
registered land survey which has not been approved as provided
in subdivision 4 unless the approval of the body authorized to
approve subdivision plats is endorsed thereon or attached
thereto.
Sec. 15. Minnesota Statutes 1992, section 508A.47,
subdivision 5, is amended to read:
Subd. 5. [FILING REGISTERED LAND SURVEY.] The registered
land survey shall be filed in the office of the registrar of
titles, who shall number each registered land survey, the
numbers to run consecutively beginning with the number "1." One
copy of each registered land survey shall be retained by the
registrar of titles as a master copy, one copy filed in a
registered land survey register in the registrar's office and
made available to the public, and one copy delivered to the
county auditor who may thereafter refer to it in connection with
the tax descriptions when convenient. Thereafter the tracts in
each registered land survey shall be known as Tract .....,
registered land survey No. ...., files of registrar of titles,
county of ....., and all conveyances shall describe said
property accordingly; but the registrar shall not accept for
filing and registration any conveyance of unplatted registered
land if the land is described in the conveyance according to a
registered land survey which has not been approved as provided
in subdivision 4 unless the approval of the body authorized to
approve subdivision plats is endorsed on it or attached to it.
J
Sec. 16. Minnesota Statutes 1992, section 508.51, is
amended to read:
508.51 [OWNER'S DUPLICATE PRESENTED; EXCEPTION.]
No new certificate of title shall be entered or issued, and
no memorial shall be made upon any certificate of title in
pursuance of any deed or other voluntary instrument made by the
registered owner or the registered owner's attorney-in-fact,
unless the owner's duplicate is presented therewith, except in
cases provided for in this law or upon the order of the court.
When such order is made, a memorial thereof shall be entered, or
a new certificate issued as directed thereby. The registrar
shall require that the owner's duplicate be presented only when
an instrument is submitted for filing that is executed by the
registered owner or the registered owner's attorney-in-fact.
When any voluntary instrument made by the registered owner or
the registered owner's attorney-in-fact is presented for
registration the production of the owner's duplicate certificate
shall authorize the registrar to enter a new certificate or to
make a memorial of registration in accordance with such
instrument, and the new certificate or memorial shall be binding
upon the registered owner and upon all persons claiming under
the registered owner in favor of every purchaser for value and
in good faith. In all cases of registration which are procured
by fraud, the owner may pursue all legal and equitable remedies
against the parties to such fraud, without prejudice to the
rights of any innocent holder for value of a certificate of
title.
Sec. 17. Minnesota Statutes 1992, section 508A.51, is
amended to read:
508A.51 [OWNER'S DUPLICATE PRESENTED; EXCEPTION.]
No new CPT shall be entered or issued, and no memorial
shall be made upon any CPT in pursuance of any deed or other
voluntary instrument made by the registered owner of the
registered owner's attorney-in-fact, unless the owner's
duplicate is presented with it, except in cases provided for in
sections 508A.01 to 508A.85, or upon the order of the court.
When an order or directive is made, a memorial of it shall be
entered, or a new CPT issued as directed. The registrar shall
require that the owner's duplicate be presented only when an
instrument is submitted for filing that is executed by the
registered owner or the registered owner's attorney-in-fact.
When any voluntary instrument made by the registered owner or
the registered owner's attorney-in-fact is presented for
registration, the production of the owner's duplicate CPT shall
authorize the registrar to enter a new CPT or to make a memorial
of registration in accordance with the instrument, and the new
CPT or memorial shall be binding upon the registered owner and
upon all persons claiming under the registered owner in favor of
every purchaser for value and in good faith. In all cases of
registration which are procured by fraud, the owner may pursue
all legal and equitable remedies against the parties to the
fraud, without prejudice to the rights of any innocent holder
for value of a CPT.
K
Sec. 18. Minnesota Statutes 1992, section 508.52, is
amended to read:
508.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF NEW
CERTIFICATE.]
An owner of registered land who desires to convey the land,
or a portion thereof, in fee, shall execute a deed of
conveyance, and file the deed, together with the owner's
duplicate certificate, with the registrar. The registrar shall
require an affidavit by the grantee, or some person in the
grantee's behalf, which affidavit shall set forth the name, age,
and residence of the grantee, whether the grantee is 18 years of
age or older, and whether the grantee is or is not under
legal disability incapacity, whether or not married, and, if
married, the name of the spouse. The deed of conveyance shall
be filed and endorsed with the number and place of registration
of the owner's certificate. Before canceling the outstanding
certificate of title the registrar shall show by memorial
thereon the registration of the deed on the basis of which it is
canceled. The encumbrances, claims, or interests adverse to the
title of the registered owner shall be stated upon the new
certificate, except so far as they may be simultaneously
released or discharged. The owner's duplicate certificate and
the original certificate of title shall be marked "Canceled" by
the registrar, who shall enter in the register a new certificate
of title to the grantee, and prepare and deliver to the grantee
a new owner's duplicate certificate. If a deed in fee is for a
portion of the land described in a certificate of title, the
memorial of the deed entered by the registrar shall include the
legal description contained in the deed and the registrar shall
enter a new certificate of title to the grantee for the portion
of the land conveyed and, except as otherwise provided in this
section, issue a residue certificate of title to the grantor for
the portion of the land not conveyed. The registrar shall
prepare and deliver to each of the parties a new owner's
duplicate certificate for their respective certificates. In
lieu of canceling the grantor's certificate of title and issuing
a residue certificate and owner's duplicate certificate to the
grantor for the portion of the land not conveyed, the registrar
may if the grantor's deed does not divide a parcel of unplatted
land, and in the absence of a request to the contrary by the
registered owner, mark by the land description on both the
owner's duplicate certificate of title and the original
certificate of title "Part of land conveyed, see memorials".
The fee for a residue certificate of title shall be paid to the
registrar only when the grantor's certificate of title is
canceled after the conveyance by the grantor of a portion of the
land described in the grantor's certificate of title. When two
or more successive conveyances of the same property are filed
for registration on the same day the registrar may enter a
certificate in favor of the grantee or grantees in the last of
the successive conveyances, and the memorial of the previous
deed or deeds entered on the prior certificate of title shall
have the same force and effect as though the prior certificate
of title had been entered in favor of the grantee or grantees in
the earlier deed or deeds in the successive conveyances. The
fees for the registration of the earlier deed or deeds shall be
the same as the fees prescribed for the entry of memorials. The
registrar of titles, with the consent of the transferee, may
mark "See memorials for new owner(s)" by the names of the
registered owners on both the original certificate of title and
the owner's duplicate certificate of title and also add to the
memorial of the transferring conveyance a statement that the
memorial shall serve in lieu of a new certificate of title in
favor of the grantee or grantees therein noted and may refrain
from canceling the certificate of title until the time it is
canceled by a subsequent transfer, and the memorial showing such
transfer of title shall have the same effect as the entry of a
new certificate of title for the land described in the
certificate of title; the fee for the registration of a
conveyance without cancellation of the certificate of title
shall be the same as the fee prescribed for the entry of a
memorial.
Sec. 19. Minnesota Statutes 1992, section 508A.52, is
amended to read:
508A.52 [CONVEYANCE; CANCELLATION OF OLD AND ISSUANCE OF
NEW CPT.]
An owner of land registered under sections 508A.01 to
508A.85 who desires to convey the land, or a portion of it, in
fee, shall execute a deed of conveyance, and file the deed,
together with the owner's duplicate CPT, with the registrar.
The registrar shall require an affidavit by the grantee, or some
person in the grantee's behalf, which affidavit shall set forth
the name, age, and residence of the grantee, whether the grantee
is 18 years of age or older, and whether the grantee is or is
not under legal disability incapacity, whether or not married,
and if married, the name of the spouse. The deed of conveyance
shall be filed and endorsed with the number and place of
registration of the owner's CPT. Before canceling the
outstanding CPT, the registrar shall show by memorial on it the
registration of the deed on the basis of which it is canceled.
The encumbrances, claims, or interests adverse to the title of
the registered owner shall be stated upon the new CPT, except so
far as they may be simultaneously released or discharged. The
owner's duplicate CPT and the original CPT shall be marked
"Canceled" by the registrar, who shall enter in the register a
new CPT to the grantee, and prepare and deliver to the grantee a
new owner's duplicate CPT. If a deed in fee is for a portion of
the land described in a CPT, the memorial of the deed entered by
the registrar shall include the legal description contained in
the deed and the registrar shall enter a new CPT to the grantee
for the portion of the land conveyed and, except as otherwise
provided in this section, issue a residue CPT to the grantor for
the portion of the land not conveyed. The registrar shall
prepare and deliver to each of the parties a new owner's
duplicate CPT for their respective CPTs. In lieu of canceling
the grantor's CPT and issuing a residue CPT and owner's
duplicate CPT to the grantor for the portion of the land not
conveyed, the registrar may if the grantor's deed does not
divide a parcel of unplatted land, and in the absence of a
request to the contrary by the registered owner, mark by the
land description on both the owner's duplicate CPT and the
original CPT "Part of land conveyed, see memorials." The fee
for a residue CPT shall be paid to the registrar only when the
grantor's CPT is canceled after the conveyance by the grantor of
a portion of the land described in the grantor's CPT. When two
or more successive conveyances of the same property are filed
for registration on the same day the registrar may enter a CPT
in favor of the grantee or grantees in the last of the
successive conveyances, and the memorial of the previous deed or
deeds entered on the prior CPT shall have the same force and
effect as though the prior CPT had been entered in favor of the
grantee or grantees in the earlier deed or deeds in the
successive conveyances. The fees for the registration of the
earlier deed or deeds shall be the same as the fees prescribed
for the entry of memorials. The registrar of titles, with the
consent of the transferee, may mark "See memorials for new
owner(s)" by the names of the registered owners on both the
original CPT and the owner's duplicate CPT and also add to the
memorial of the transferring conveyance a statement that the
memorial shall serve in lieu of a new CPT in favor of the
grantee or grantees noted in it and may refrain from canceling
the CPT until the time it is canceled by a subsequent transfer,
and the memorial showing the transfer of title shall have the
same effect as the entry of a new CPT for the land described in
the CPT. The fee for the registration of a conveyance without
cancellation of the CPT shall be the same as the fee prescribed
for the entry of a memorial.
L
Sec. 20. Minnesota Statutes 1992, section 508.55, is
amended to read:
508.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON
CERTIFICATE.]
The registration of a mortgage made by the registered owner
or the registered owner's attorney-in-fact shall be made in the
following manner: The owner's duplicate certificate shall be
presented to the registrar, together with the mortgage deed, or
other instrument to be registered, and the registrar shall enter
upon the original certificate of title and also upon the owner's
duplicate certificate a memorial of the purport of the
instrument registered, the exact time of filing, and its file
number. The registrar shall also note upon the registered
instrument the time of filing and a reference to the volume and
page where it is registered. The registration of a mortgage
made by a party having an interest registered on the certificate
of title, other than the registered owner or the registered
owner's attorney-in-fact, must be made in the same manner,
except that the owner's duplicate certificate need not be
presented to the registrar.
Sec. 21. Minnesota Statutes 1992, section 508A.55, is
amended to read:
508A.55 [REGISTRATION OF MORTGAGE; MEMORIAL ENTERED ON
CERTIFICATE.]
The registration of a mortgage made by the registered owner
or the registered owner's attorney-in-fact shall be made in the
following manner: The owner's duplicate CPT shall be presented
to the registrar, together with the mortgage deed, or other
instrument to be registered, and the registrar shall enter upon
the original CPT and also upon the owner's duplicate CPT a
memorial of the purport of the instrument registered, the exact
time of filing, and its file number. The registrar shall also
note upon the registered instrument the time of filing and a
reference to the volume and page where it is registered.
M
Sec. 22. Minnesota Statutes 1992, section 508.68, is
amended to read:
508.68 [DEATH OF OWNER; ISSUANCE OF NEW CERTIFICATES.]
When the owner of registered land, or of any estate or
interest therein, dies, having devised the same by will, the
persons entitled thereto may file with the registrar a certified
copy of such will and the personal representative's deed of
distribution together with any order of distribution, if there
be one, or certified copy of any final decree, if there be one,
assigning the same, and the duplicate certificate issued to the
testator, and thereupon the registrar shall cancel the duplicate
certificate issued to the testator and issue a new duplicate
certificate to the persons designated. When the owner of
registered land, or of any estate or interest therein, dies, not
having devised the same, the persons entitled thereto by law may
file with the registrar the personal representative's deed of
distribution together with a certified copy of any order of
distribution, if there be one, or a certified copy of any final
decree of the court assigning the same, together with the
duplicate certificate issued to the intestate, and thereupon the
registrar shall cancel the duplicate certificate issued to the
intestate and issue a new duplicate certificate to the persons
entitled thereto. Unless restricted by letters testamentary or
letters of administration, a personal representative may sell,
convey, or mortgage registered land in the same manner as if the
land were registered in the representative's name. Such
personal representative shall first file with the registrar a
certified copy of any will of the decedent and a certified copy
of the representative's letters.
Sec. 23. Minnesota Statutes 1992, section 508A.68, is
amended to read:
508A.68 [DEATH OF OWNER; ISSUANCE OF NEW CPTS.]
When the owner of land registered under sections 508A.01 to
508A.85, or of any estate or interest in it, dies, having
devised the same by will, the persons entitled to it may file
with the registrar a certified copy of the will and the personal
representative's deed of distribution together with any order of
distribution, if there is one, or certified copy of any final
decree, if there is one, assigning it, and the duplicate CPT
issued to the testator. The registrar shall then cancel the
duplicate CPT issued to the testator and issue a new duplicate
CPT to the persons designated. When the owner of land
registered under sections 508A.01 to 508A.85, or of any estate
or interest therein, dies, not having devised it, the persons
entitled to it by law may file with the registrar the personal
representative's deed of distribution together with a certified
copy of any order of distribution, if there be one, or a
certified copy of any final decree of the court assigning it,
together with the duplicate CPT issued to the intestate. The
registrar shall then cancel the duplicate CPT issued to the
intestate and issue a new duplicate CPT to the persons entitled
to it. Unless restricted by letters of testamentary or letters
of administration, a personal representative may sell, convey,
or mortgage land registered under sections 508A.01 to 508A.85 in
the same manner as if the land were registered in the
representative's name. The personal representative shall first
file with the registrar a certified copy of any will of the
decedent and a certified copy of the representative's letters.
N
Sec. 24. Minnesota Statutes 1992, section 508.70, is
amended to read:
508.70 [SUBSEQUENT HOW TO MAKE ADVERSE CLAIM, HOW
REGISTERED; COSTS AFTER REGISTRATION.]
Subdivision 1. [PROCEDURE; COSTS.] Any person claiming any
right, title, or interest in registered land adverse to the
registered owner thereof arising subsequent to the date of the
original registration, may, if no other provision is made in
this chapter for registering the same, file with the registrar a
verified statement in writing setting forth fully the alleged
right or interest, and how or from whom it was acquired, and a
reference to the volume and page of the certificate of title of
the registered owner, together with a description of the land,
the adverse claimant's residence, and designating a place at
which all notices may be served upon the adverse claimant. Such
statement shall be entitled to registration as an adverse claim,
and the court, upon the petition of any party in interest, shall
grant a speedy hearing upon the validity of such adverse claim
and enter such decision and decree therein as justice and equity
may require. If the adverse claim is adjudged to be invalid,
the registration thereof shall be canceled. The court may, in
any case, award such costs and damages, including a reasonable
attorney's fee, as it may deem just.
Subd. 2. [TEN-YEAR LIMIT UNLESS NEW FILING.] On and after
March 1, 1995, no adverse claim statement shall be notice,
either actual or constructive, of any matters referred to in the
statement after it has been of record for ten years unless a new
statement re-alleging the facts is filed within the ten-year
period upon the affected certificate of title or unless a
certified copy of a petition in a subsequent proceeding or a
notice of lis pendens to adjudicate the matters alleged in the
statement is filed within the ten-year period. The registrar of
titles shall not carry forward to new certificates of title the
memorial of any statement of adverse claim that has terminated
as notice pursuant to this subdivision.
O
Sec. 25. Minnesota Statutes 1992, section 508.71,
subdivision 4, is amended to read:
Subd. 4. [REGISTRATION OF MEMORIALS.] Without order of
court or directive of the examiner, the registrar of titles may
receive and register as memorials upon any certificate of title
to which they pertain, the following instruments: receipt or
certificate of county treasurer showing redemption from any tax
sale or payment of any tax described in a certificate of title,
a state deed issued to purchaser of tax-forfeited land, a
certified copy of a marriage certificate showing the subsequent
marriage of any owner party shown by a certificate of title to
be unmarried, a certified copy of a final decree of divorce or
dissolution of a marriage entered in the state of Minnesota, or
in any state, territory or possession of the United States, or
the District of Columbia to establish the dissolution of a
marriage relationship of any party shown on the certificate to
be married, and a certified copy of the death certificate of
party listed in any certificate of title as being the spouse of
the registered owner when accompanied by an affidavit
satisfactory to the registrar identifying the decedent with the
spouse. In all subsequent dealings with the land covered by the
certificates, the registrar shall give full faith to these
memorials.
Sec. 26. Minnesota Statutes 1992, section 508A.71,
subdivision 4, is amended to read:
Subd. 4. [POWERS OF REGISTRAR.] Without order of court or
directive of the examiner the registrar of titles may receive
and register as memorials upon any CPT to which they pertain,
the following instruments; receipt or certificate of county
treasurer showing redemption from any tax sale or payment of any
tax described in a CPT, a certified copy of a marriage
certificate showing the subsequent marriage of any owner party
shown by a CPT to be unmarried, a certified copy of a final
decree of divorce or dissolution of a marriage entered in the
state of Minnesota, or in any state, territory or possession of
the United States, or the District of Columbia to establish the
dissolution of a marriage relationship of any party shown on the
certificate to be married, a certified copy of the death
certificate of party listed in any CPT as being the spouse of
the registered owner when accompanied by an affidavit
satisfactory to the registrar identifying the decedent with the
spouse. In all subsequent dealings with the land covered by
CPTs the registrar shall give full faith to these memorials.
ARTICLE 4
COMMON INTEREST OWNERSHIP ACT
A
CORRECTIONS AND OTHER CHANGES
Section 1. Minnesota Statutes 1993 Supplement, section
515B.1-102, is amended to read:
515B.1-102 [APPLICABILITY.]
(a) Except as provided in this section, this chapter, and
not chapters 515 and 515A, applies to all common interest
communities created within this state on and after June 1, 1994.
(b) The applicability of this chapter to common interest
communities created prior to June 1, 1994, shall be as follows:
(1) This chapter shall apply to condominiums created under
chapter 515A with respect to events and circumstances occurring
on and after June 1, 1994; provided (i) that this chapter shall
not invalidate the declarations, bylaws or condominium plats of
those condominiums, and (ii) that chapter 515A, and not this
chapter, shall govern all rights and obligations of a declarant
of a condominium created under chapter 515A, and the rights and
claims of unit owners against that declarant.
(2) The following sections shall apply to condominiums
created under chapter 515: 515B.1-105 (Separate Titles and
Taxation); 515B.1-106 (Applicability of Local Ordinances,
Regulations, and Building Codes); 515B.1-107 (Eminent Domain);
515B.1-116 (Recording); 515B.2-103 (Construction and Validity of
Declaration and Bylaws); 515B.2-104 (Description of Units);
515B.2-118 (Amendment of Declaration); 515B.3-102 (Powers of
Unit Owners' Association); 515B.3-110 (Voting; Proxies);
515B.3-111 (Tort and Contract Liability); 515B.3-113
(Insurance); 515B.3-116 (Lien for Assessments); 515B.3-117
(Other Liens); 515B.3-118 (Association Records); 515B.3-121
(Accounting Controls); 515B.4-107 (Resale of Units); 515B.4-108
(Purchaser's Right to Cancel Resale); 515B.4-116 (Rights of
Action; Attorney's Fees); and 515B.1-103 (Definitions) to the
extent necessary in construing any of those sections. The
foregoing sections shall apply only with respect to events and
circumstances occurring on and after June 1, 1994, and shall not
invalidate the declarations, bylaws or condominium plats of
those condominiums.
(3) This chapter shall not apply to cooperatives and
planned communities created prior to June 1, 1994; except by
election pursuant to subsection (d) and except that section
515B.2-118 (Amendment of Declaration) shall apply to all planned
communities created in this state prior to June 1, 1994.
(c) This chapter shall not invalidate any amendment to the
declaration, bylaws or condominium plat of any condominium
created under chapter 515 or 515A if the amendment would be
permitted by this chapter was recorded before June 1, 1994. Any
permitted amendment recorded on or after June 1, 1994, shall be
adopted in conformity with the procedures and requirements
specified by those instruments and by this chapter. If the
amendment grants to any person any rights, powers or privileges
permitted by this chapter, all correlative obligations,
liabilities and restrictions contained in this chapter shall
also apply to that person.
(d) Any condominium created under chapter 515, any planned
community or cooperative which would be exempt from this chapter
under subsection (e), or any planned community or cooperative
created prior to June 1, 1994, may elect to be subject to this
chapter, as follows:
(1) The election shall be accomplished by recording a
declaration or amended declaration, and approving bylaws or
amended bylaws, which conform to the requirements of this
chapter, and which, in the case of amendments, are adopted in
conformity with the procedures and requirements specified by the
existing declaration and bylaws of the common interest
community, and by any applicable statutes.
(2) An amended CIC plat shall not be required unless the
amended declaration or bylaws contain provisions inconsistent
with the existing CIC plat; provided, that the recording officer
shall index or cross-reference the CIC number to any existing
CIC plat.
(3) Except as otherwise expressly permitted under this
chapter, no amendment may (i) create or increase special
declarant rights; (ii) increase the number of units; (iii)
convert common elements to limited common elements; or (iv)
change the boundaries of a unit, a unit's allocated interests,
or the residential or nonresidential use of a unit, in the
absence of unanimous written agreement of all unit owners and
mortgagees holding first liens on units. The amendment shall
conform to the requirements of section 515B.2-118(d).
(4) Except as permitted by paragraph (3), no declarant,
affiliate of declarant, association, master association nor unit
owner may acquire, increase, waive, reduce or revoke any
previously existing warranty rights or causes of action that one
of said persons has against any other of said persons by reason
of exercising the right of election under this subsection.
(5) A common interest community which elects to be subject
to this chapter may, as a part of the election process, change
its form of ownership by complying with the requirements of
section 515B.2-123.
(e) Except as otherwise provided in this subsection, this
chapter shall not apply, except by election pursuant to
subsection (d), to the following:
(1) a planned community or cooperative which consists of 12
or fewer units subject to the same declaration, which is not
subject to any rights to add additional real estate and which
will not be subject to a master association;
(2) a common interest community where the units consist
solely of separate parcels of real estate designed or utilized
for detached single family dwellings or agricultural purposes,
and where the association has no obligation to maintain any
building containing a dwelling or any agricultural building;
(3) a planned community or cooperative where, at the time
of creation of the planned community or cooperative, the unit
owners' interests in the dwellings consist solely of leasehold
interests having an unexpired term of fewer than 20 years,
including renewal options;
(4) a common interest community containing only a
combination of dwellings described in paragraphs (2) and (3);
(5) planned communities and cooperatives limited by the
declaration to nonresidential use; or
(6) real estate subject only to an instrument or
instruments filed primarily for the purpose of creating or
modifying rights with respect to access, ditches, drainage or
irrigation.
(f) Section 515B.1-106 shall apply to all common interest
communities.
Sec. 2. Minnesota Statutes 1993 Supplement, section
515B.1-103, is amended to read:
515B.1-103 [DEFINITIONS.]
In the declaration and bylaws, unless specifically provided
otherwise or the context otherwise requires, and in this chapter:
(1) "Additional real estate" means real estate that may be
added to a flexible common interest community.
(2) "Affiliate of a declarant" means any person who
controls, is controlled by, or is under common control with a
declarant.
(A) A person "controls" a declarant if the person (i) is a
general partner, officer, director, or employer of the
declarant, (ii) directly or indirectly or acting in concert with
one or more other persons, or through one or more subsidiaries,
owns, controls, holds with power to vote, or holds proxies
representing, more than 20 percent of the voting interest in the
declarant, (iii) controls in any manner the election of a
majority of the directors of the declarant, or (iv) has
contributed more than 20 percent of the capital of the declarant.
(B) A person "is controlled by" a declarant if the
declarant (i) is a general partner, officer, director, or
employer of the person, (ii) directly or indirectly or acting in
concert with one or more other persons, or through one or more
subsidiaries, owns, controls, holds with power to vote, or holds
proxies representing, more than 20 percent of the voting
interest in the person, (iii) controls in any manner the
election of a majority of the directors of the person, or (iv)
has contributed more than 20 percent of the capital of the
person.
(C) Control does not exist if the powers described in this
subsection are held solely as a security interest and have not
been exercised.
(3) "Allocated interests" means the following interests
allocated to each unit: (i) in a condominium, the undivided
interest in the common elements, the common expense liability,
and votes in the association; (ii) in a cooperative, the common
expense liability and the ownership interest and votes in the
association; and (iii) in a planned community, the common
expense liability and votes in the association.
(4) "Association" means the unit owners' association
organized under section 515B.3-101.
(5) "Board" means the body, regardless of name, designated
in the articles of incorporation, bylaws or declaration to act
on behalf of the association, or on behalf of a master
association when so identified.
(6) "CIC plat" means a common interest community plat
described in section 515B.2-110.
(7) "Common elements" means all portions of the common
interest community other than the units.
(8) "Common expenses" means expenditures made or
liabilities incurred by or on behalf of the association, or
master association when so identified, together with any
allocations to reserves.
(9) "Common expense liability" means the liability for
common expenses allocated to each unit pursuant to section
515B.2-108.
(10) "Common interest community" means contiguous or
noncontiguous real estate within Minnesota that is subject to an
instrument which obligates persons owning a separately described
parcel of the real estate, or occupying a part of the real
estate pursuant to a proprietary lease, by reason of their
ownership or occupancy, to pay for (i) real estate taxes levied
against; (ii) insurance premiums payable with respect to; (iii)
maintenance of; or (iv) construction, maintenance, repair or
replacement of, improvements located on one or more parcels or
parts of the real estate other than the parcel or part that the
person owns or occupies.
(11) "Condominium" means a common interest community in
which (i) portions of the real estate are designated as units,
(ii) the remainder of the real estate is designated for common
ownership solely by the owners of the units, and (iii) undivided
interests in the common elements are vested in the unit owners.
(12) "Conversion property" means real estate on which is
located a building that at any time within two years before
creation of the common interest community was occupied as a
residence wholly or partially by persons other than purchasers
and persons who occupy with the consent of purchasers.
(13) "Cooperative" means a common interest community in
which the real estate is owned by an association, each of whose
members is entitled by virtue of the member's ownership interest
in the association to a proprietary lease.
(14) "Dealer" means a person in the business of selling
units for the person's own account.
(15) "Declarant" means:
(i) if the common interest community has been created, (A)
any person who has executed a declaration, or an amendment to a
declaration to add additional real estate, except secured
parties, persons whose interests in the real estate will not be
transferred to unit owners, or, in the case of a leasehold
common interest community, a lessor who possesses no special
declarant rights and who is not an affiliate of a declarant who
possesses special declarant rights, or (B) any person who
reserves, or succeeds under section 515B.3-104 to any special
declarant rights; or
(ii) any person or persons acting in concert who have
offered prior to creation of the common interest community to
transfer their interest in a unit to be created and not
previously transferred.
(16) "Declaration" means any instrument, however
denominated, including any amendment to the instrument, that
creates a common interest community.
(17) "Dispose" or "disposition" means a voluntary transfer
to a purchaser of any legal or equitable interest in the common
interest community, but the term does not include the transfer
or release of a security interest.
(18) "Flexible common interest community" means a common
interest community to which additional real estate may be added.
(19) "Leasehold common interest community" means a common
interest community in which all or a portion of the real estate
is subject to a lease the expiration or termination of which
will terminate the common interest community or reduce its size.
(20) "Limited common element" means a portion of the common
elements allocated by the declaration or by operation of section
515B.2-102(d) or (f) for the exclusive use of one or more but
fewer than all of the units.
(21) "Master association" means an entity that directly or
indirectly exercises any of the powers set forth in section
515B.3-102 on behalf of one or more members described in section
515B.2-121(b), (i), (ii) or (iii), whether or not it also
exercises those powers on behalf of one or more property owners
associations described in section 515B.2-121(b)(iv). An entity
hired by an association to perform maintenance, repair,
accounting, bookkeeping or management services is not, solely by
virtue of that relationship, a master association.
(22) "Period of declarant control" means the time period
provided for in section 515B.3-103(c) during which the declarant
may appoint and remove officers and directors of the association.
(23) "Person" means an individual, corporation, limited
liability company, partnership, trustee under a trust, personal
representative, guardian, conservator, government, governmental
subdivision or agency, or other legal or commercial entity
capable of holding title to real estate.
(24) "Planned community" means a common interest community
that is not a condominium or a cooperative. A condominium or
cooperative may be a part of a planned community.
(25) "Proprietary lease" means an agreement with a
cooperative association whereby a member of the association is
entitled to exclusive possession of a unit in the cooperative.
(26) "Purchaser" means a person, other than a declarant,
who by means of a voluntary transfer acquires a legal or
equitable interest in a unit other than (i) a leasehold interest
of less than 20 years, including renewal options, or (ii) a
security interest.
(27) "Real estate" means any fee simple, leasehold or other
estate or interest in, over, or under land, including
structures, fixtures, and other improvements and interests that
by custom, usage, or law pass with a conveyance of land though
not described in the contract of sale or instrument of
conveyance. "Real estate" may include spaces with or without
upper or lower boundaries, or spaces without physical boundaries.
(28) "Residential use" means use as a dwelling, whether
primary, secondary or seasonal, but not transient use such as
hotels or motels.
(29) "Secured party" means the person owning a security
interest as defined in paragraph (30).
(30) "Security interest" means a perfected interest in real
estate or personal property, created by contract or conveyance,
which secures payment or performance of an obligation. The term
includes a mortgagee's interest in a mortgage, a vendor's
interest in a contract for deed, a lessor's interest in a lease
intended as security, a holder's interest in a sheriff's
certificate of sale during the period of redemption, an
assignee's interest in an assignment of leases or rents intended
as security, a lender's interest in a cooperative share loan, a
pledgee's interest in the pledge of an ownership interest, or
any other interest intended as security for an obligation under
a written agreement.
(31) "Special declarant rights" means rights reserved in
the declaration for the benefit of a declarant to (i) complete
improvements indicated on the CIC plat; (ii) add additional real
estate to a common interest community; (iii) create units,
common elements, or limited common elements within a common
interest community; (iv) subdivide units or convert units into
common elements, limited common elements and/or units; (v)
maintain sales offices, management offices, signs advertising
the common interest community, and models; (vi) use easements
through the common elements for the purpose of making
improvements within the common interest community or any
additional real estate; (vii) create a master association and
provide for the exercise of authority by the master association
over the common interest community or its unit owners; (viii)
merge or consolidate a common interest community with another
common interest community of the same form of ownership; or (ix)
appoint or remove any officer or director of the association or
any master association during any period of declarant control.
(32) "Time share" means a right to occupy a unit or any of
several units during five three or more separate time periods
over a period of a least five three years, including renewal
options, whether or not coupled with an estate or interest in a
common interest community or a specified portion thereof.
(33) "Unit" means a parcel of real estate within physical
portion of a common interest community the boundaries of
which parcel are described in the common interest community's
declaration and which is intended for separate ownership or
separate occupancy pursuant to a proprietary lease.
(34) "Unit identifier" means English letters or Arabic
numerals, or a combination thereof, which identify only one unit
in a common interest community and which meet the requirements
of section 515B.2-104.
(35) "Unit owner" means a declarant or other person who
owns a unit, or a lessee of a unit in a leasehold common
interest community whose lease expires simultaneously with any
lease the expiration or termination of which will remove the
unit from the common interest community, but does not include a
secured party. In a common interest community, the declarant is
the unit owner of a unit until that unit has been conveyed to
another person.
Sec. 3. Minnesota Statutes 1993 Supplement, section
515B.1-105, is amended to read:
515B.1-105 [SEPARATE TITLES AND TAXATION.]
(a) In a cooperative:
(1) Each unit, and its allocated interests and right to
possession under a proprietary lease, constitutes a separate
interest in personal property, or a separate parcel of real
estate if so designated by the declaration.
(2) The unit owners' interests in units and their allocated
interests are wholly personal property, unless the declaration
provides that the interests are wholly real estate. The
characterization of these interests as real or personal property
shall not affect whether homestead exemptions or classifications
apply.
(3) (2) The ownership interest in a unit which may be sold,
conveyed, voluntarily or involuntarily encumbered, or otherwise
transferred by a unit owner, is the right to possession of that
unit under a proprietary lease coupled with the allocated
interests of that unit, and the association's interest in that
unit is not affected by the transaction.
(b) In a condominium or planned community:
(1) Each unit, and its allocated interest in the common
elements, constitutes a separate parcel of real estate.
(2) If there is any unit owner other than a declarant, each
unit shall be separately taxed and assessed, and no separate tax
or assessment may be rendered against any common elements.
(c) If a declaration is recorded prior to 30 days before
any installment of real estate taxes becomes payable, the local
taxing authority shall split the taxes so payable on the common
interest community among the units. Interest and penalties
which would otherwise accrue shall not begin to accrue until at
least 30 days after the split is accomplished.
(d) A unit used for residential purposes together with not
more than three units used for vehicular parking, and their
common element interests, shall be treated as one parcel of real
estate in determining whether homestead exemptions or
classifications apply.
Sec. 4. Minnesota Statutes 1993 Supplement, section
515B.1-116, is amended to read:
515B.1-116 [RECORDING.]
(a) A declaration, bylaws, any amendment to a declaration
or bylaws, and any other instrument affecting a common interest
community shall be entitled to be recorded.
(b) The recording officer shall upon request promptly
assign a number (CIC number) to a common interest community to
be formed or to a common interest community resulting from the
merger of two or more common interest communities.
(c) Documents recorded pursuant to this chapter shall in
the case of registered land be filed, and references to the
recording of documents shall mean filed in the case of
registered land.
(d) Subject to any specific requirements of this chapter,
if any document to be recorded pursuant to this chapter requires
approval by a certain vote or agreement of the unit owners or
secured parties, an affidavit of the secretary of the
association stating that the required vote or agreement has
occurred shall be attached to the document and shall constitute
prima facie evidence of the representations contained therein.
(e) If a common interest community is located on registered
land, the recording fee for any document affecting two or more
units shall be the then-current fee for registering the document
on one certificate the certificates of title for the first ten
affected certificate certificates and one-third of the
then-current fee for each additional affected certificate. This
provision shall not apply to recording fees for deeds of
conveyance, with the exception of deeds given pursuant to
sections 515B.2-119 and 515B.3-112.
(f) An amendment to or restatement of a declaration or
bylaws, or an amended CIC plat, approved by the required vote of
unit owners of an association may be recorded without the
necessity of paying the current or delinquent taxes on any of
the units in the common interest community.
Sec. 5. Minnesota Statutes 1993 Supplement, section
515B.2-104, is amended to read:
515B.2-104 [DESCRIPTION OF UNITS.]
(a) If the CIC plat in a common interest community complies
with section 515B.2-110(c), a description of a unit is legally
sufficient if it sets forth (i) the unit identifier of the unit,
(ii) the number assigned to the common interest community by the
recording officer, and (iii) the county in which the unit is
located. In a condominium or cooperative created under this
chapter, a unit identifier shall contain no more than six
characters, only one of which may be a letter.
(b) If the CIC plat for a planned community complies with
chapter 505, 508, or 508A, then a description of a unit in the
planned community is legally sufficient if it is stated in terms
of a plat or registered land survey and contains the common
interest community number. A description of a unit is legally
sufficient if it sets forth (i) the unit identifier of the unit,
(ii) the number assigned to the common interest community by the
recording officer, and (iii) the county in which the unit is
located.
(b) The unit identifier shall be stated in the
declaration. If the CIC plat for a planned community complies
with chapter 505, 508, or 508A, then the declaration shall
designate the lot, block, and subdivision name, or the tract and
registered land survey number, as the unit identifier. In all
other planned communities, and in all condominiums and
cooperatives created under this chapter, a unit identifier shall
contain no more than six characters, only one of which may be a
letter.
(c) A description which conforms to the requirements of
this section shall be deemed to include all rights, obligations,
and interests appurtenant to the unit which were created by the
declaration or bylaws, or by this chapter, whether or not those
rights, obligations, or interests are expressly described.
(d) If the CIC plat for a planned community complies with
section 515B.2-110(c) a description of the common elements is
legally sufficient if it sets forth (i) the words "common
elements," (ii) the number assigned to the common interest
community by the recording officer, and (iii) the county in
which the common elements are located. The common elements may
consist of separate parcels of real estate, in which case each
parcel shall be separately identified on the CIC plat and in any
recorded instrument referencing a separate parcel of the common
elements.
Sec. 6. Minnesota Statutes 1993 Supplement, section
515B.2-105, is amended to read:
515B.2-105 [CONTENTS OF DECLARATION; ALL COMMON INTEREST
COMMUNITIES.]
(a) The declaration shall contain:
(1) the number of the common interest community, and the
names of the common interest community and the association;
(2) a statement that the common interest community is
either a condominium, cooperative, or planned community, and
whether it is or is not subject to a master association;
(3) a statement that the association has been incorporated
and a reference to the statute under which it was incorporated;
(4) a legally sufficient description of the real estate
included in the common interest community, including the name of
the county, and any appurtenant easements;
(5) a description of the boundaries of each unit created by
the declaration and the unit's unit identifier;
(6) in a planned community containing common elements, a
legally sufficient description of the common elements;
(7) in a cooperative, a statement as to whether the unit
owners' interests in all units and their allocated interests are
real estate or personal property;
(7) (8) an allocation to each unit of the allocated
interests in the manner described in section 515B.2-108;
(8) (9) a statement of (i) the total number of units and
(ii) which units will be restricted to residential use and which
units will be restricted to nonresidential use;
(9) (10) a statement of the maximum number of units which
may be created by the subdivision or conversion of units owned
by the declarant pursuant to section 515B.2-112;
(10) (11) any material restrictions on use, occupancy, or
alienation of the units, or on the sale price of a unit or on
the amount that may be received by an owner on sale,
condemnation or casualty loss to the unit or to the common
interest community, or on termination of the common interest
community; provided, that these requirements shall not affect
the power of the association to adopt, amend or revoke rules and
regulations pursuant to section 515B.3-102;
(11) (12) a statement as to whether time shares are
permitted; and
(12) (13) all matters required by sections 515B.1-103(31),
Special Declarant Rights; 515B.2-107, Leaseholds; 515B.2-109,
Common Elements and Limited Common Elements; 515B.2-110, Common
Interest Community Plat; 515B.3-115, Assessments for Common
Expenses; and 515B.2-121, Master Associations.
(b) The declaration may contain any other matters the
declarant considers appropriate.
Sec. 7. Minnesota Statutes 1993 Supplement, section
515B.2-110, is amended to read:
515B.2-110 [COMMON INTEREST COMMUNITY PLAT (CIC PLAT).]
(a) The CIC plat is a part of the declaration, but need not
be physically attached to the declaration. The CIC plat is
required for condominiums and planned communities, and
cooperatives in which the unit owners' interests are
characterized as real estate. In cooperatives in which the unit
owners' interests are characterized as personal property, the
declaration shall include, a CIC plat shall not be required. In
lieu of a CIC plat, the declaration or any amendment to it
creating, converting, or subdividing units in a personal
property cooperative shall include an exhibit containing a scale
drawing of each building, identifying the building, and showing
the perimeter walls of each unit created or changed by the
declaration or the amendment, including the unit's unit
identifier, and its location within a the building if the
building contains more than one unit.
(b) The CIC plat shall contain certifications by a
registered professional land surveyor and registered
professional architect, as to the parts of the CIC plat prepared
by each, that (i) the CIC plat accurately depicts all
information required by this section, and (ii) the work was
undertaken by, or reviewed and approved by, the certifying land
surveyor or architect. The portions of the CIC plat depicting
the dimensions of the portions of a condominium or cooperative
described in subsections (c)(8), (9), (10), and (12), may be
prepared by either a land surveyor or an architect. The other
portions of the CIC plat shall be prepared only by a land
surveyor. Certification by the land surveyor or architect does
not constitute a guaranty or warranty of the nature,
suitability, or quality of construction of any improvements
located or to be located in the common interest community.
(c) A CIC plat for a condominium or cooperative shall show:
(1) the number of the common interest community, and the
boundaries, dimensions and a legally sufficient description of
the land included therein;
(2) the dimensions and location of all existing, material
structural improvements and roadways;
(3) the intended location and dimensions of any
contemplated common element improvements to be constructed
within the common interest community after the filing of the CIC
plat, labeled either "MUST BE BUILT" or "NEED NOT BE BUILT";
(4) the location and dimensions of any additional real
estate, labeled as such, and a legally sufficient description of
the additional real estate;
(5) the extent of any encroachments by or upon any portion
of the common interest community;
(6) the location and dimensions of all recorded easements
within the common interest community serving or burdening any
portion of the common interest community;
(7) the distance and direction between noncontiguous
parcels of real estate;
(8) the location and dimensions of limited common elements,
for example, storage lockers, porches, balconies, decks and
patios, other than limited common elements described in section
515B.2-102, subsections (b) and (d);
(9) the location and dimensions of the front, rear, and
side boundaries of each unit and that unit's unit identifier;
(10) the location and dimensions of the upper and lower
boundaries of each unit with reference to an established or
assumed datum and that unit's unit identifier;
(11) a legally sufficient description of any real estate in
which the unit owners will own only an estate for years, labeled
as "leasehold real estate";
(12) any units which may be converted by the declarant to
create additional units or common elements identified separately.
(d) A CIC plat for a planned community either shall comply
with either subsection (c) or it shall:
(1) show the number of the common interest community;
(2) satisfy the requirements of chapter 505, 508, or 508A,
as applicable; and
(3) satisfy the platting requirements of any governmental
authority within whose jurisdiction the planned community is
located, subject to the limitations set forth in section
515B.1-106.
(e) If a declarant adds additional real estate, the
declarant shall record a supplemental CIC plat or plats for the
real estate being added, conforming to the requirements of
subsections (b) and (c) in the case of a condominium or
cooperative, and subsections (b) and (d) in the case of a
planned community. If less than all additional real estate is
being added, the supplemental CIC plat for a condominium or
cooperative shall also show the location and dimensions of the
remaining portion.
(f) If a declarant subdivides or converts any unit into two
or more units, common elements or limited common elements, the
declarant shall record an amendment to the CIC plat showing the
location and dimensions of any new units, common elements and
limited common elements thus created.
Sec. 8. Minnesota Statutes 1993 Supplement, section
515B.2-118, is amended to read:
515B.2-118 [AMENDMENT OF DECLARATION.]
(a) Except in cases of amendments that may be executed by a
declarant under section 515B.2-111 or 515B.2-112, or by the
association and/or certain unit owners under section 515B.2-107,
515B.2-109, 515B.2-112, 515B.2-113, 515B.2-114, or 515B.2-119,
and except as limited by subsection (d), the declaration,
including any CIC plat, may be amended only by vote or written
agreement of unit owners of units to which at least 67 percent
of the votes in the association are allocated, or any greater or
other requirement the declaration specifies. The declaration
may specify a smaller percentage only if all of the units are
restricted to nonresidential use.
(b) No action to challenge the validity of an amendment
adopted by the association pursuant to this section may be
brought more than two years after the amendment is recorded.
(c) Every amendment to the declaration shall be recorded in
every county in which any portion of the common interest
community is located and is effective only when recorded.
(d) Except as expressly permitted or required by other
provisions of this chapter, no amendment may (i) create or
increase special declarant rights, (ii) increase the number of
units, (iii) change the boundaries of any unit, (iv) change the
allocated interests of a unit, (v) change common elements to
limited common elements, (vi) change the authorized use of a
unit from residential to nonresidential, or conversely, or (vii)
change the characterization of the unit owners' interests in a
cooperative from real estate to personal property, or
conversely,
in the absence of unanimous written consent of the unit owners.
Sec. 9. Minnesota Statutes 1993 Supplement, section
515B.2-119, is amended to read:
515B.2-119 [TERMINATION OF COMMON INTEREST COMMUNITY.]
(a) A common interest community may be terminated only by
agreement of unit owners of units to which at least 80 percent
of the votes in the association are allocated, and 80 percent of
the first mortgagees of units (each mortgagee having one vote
per unit financed), or any larger percentage the declaration
specifies. The declaration may specify a smaller percentage
only if all of the units are restricted to nonresidential use.
(b) An agreement to terminate shall be evidenced by a
written agreement, executed in the same manner as a deed by the
number of unit owners and first mortgagees of units required by
subsection (a). The agreement shall specify a date after which
the agreement shall be void unless recorded before that date.
The agreement shall also specify a date by which the termination
of the common interest community and the winding up of its
affairs must be accomplished. A certificate of termination
executed by the association evidencing the termination shall be
recorded on or before the termination date, or the agreement to
terminate shall be revoked. The agreement to terminate, or a
memorandum thereof, and the certificate of termination shall be
recorded in every county in which a portion of the common
interest community is situated and is effective only upon
recording.
(c) In the case of a condominium or planned community
containing only units having upper and lower boundaries, a
termination agreement may provide that all of the common
elements and units of the common interest community must be sold
following termination. If, pursuant to the agreement, any real
estate in the common interest community is to be sold following
termination, the termination agreement shall set forth the
minimum terms of sale acceptable to the association.
(d) In the case of a condominium or planned community
containing any units not having upper and lower boundaries
described in the declaration, a termination agreement may
provide for sale of the common elements, but it may not require
that the units be sold following termination, unless the
original declaration provided otherwise or all unit owners whose
units are to be sold consent to the sale.
(e) The association, on behalf of the unit owners, shall
have authority to contract for the sale of real estate in a
common interest community pursuant to this section, subject to
the required approval. The agreement to terminate shall be
deemed to grant to the association a power of attorney coupled
with an interest to effect the conveyance of the real estate on
behalf of the holders of all interests in the units, including
without limitation the power to execute all instruments of
conveyance and related instruments. Until the sale has been
completed, all instruments in connection with the sale have been
executed and the sale proceeds distributed, the association
shall continue in existence with all powers it had before
termination.
(1) The instrument conveying or creating the interest in
the common interest community shall include as exhibits (i) an
affidavit of the secretary of the association certifying that
the approval required by this section has been obtained and (ii)
a schedule of the names of all unit owners in the common
interest community as of the date of the approval.
(2) Proceeds of the sale shall be distributed to unit
owners and secured parties as their interests may appear, in
accordance with subsections (h), (i), (j), and (k).
(3) Unless otherwise specified in the agreement of
termination, until the association has conveyed title to the
real estate, each unit owner and the unit owner's successors in
interest have an exclusive right to occupancy of the portion of
the real estate that formerly constituted the unit. During the
period of that occupancy, each unit owner and the unit owner's
successors in interest remain liable for all assessments and
other obligations imposed on unit owners by this chapter, the
declaration or the bylaws.
(f) The legal description of the real estate constituting
the common interest community shall, upon the date of recording
of the certificate of termination referred to in subsection (b),
be as follows:
(1) In a planned community, the lot and block description
contained in the CIC plat, and any amendments thereto, subject
to any subsequent conveyance or taking of a fee interest in any
part of the property.
(2) In a condominium or cooperative, the underlying legal
description of the real estate as set forth in the declaration
creating the common interest community, and any amendments
thereto, subject to any subsequent conveyance or taking of a fee
interest in any part of the property.
(3) The legal description referred to in this subsection
shall apply upon the recording of the certificate of
termination. The recording officer for each county in which the
common interest community is located shall index the property
located in that county in its records under the legal
description required by this subsection from and after the date
of recording of the certificate of termination. In the case of
registered property, the registrar of titles shall cancel the
existing certificates of title with respect to the property and
issue one or more certificates of title for the property
utilizing the legal description required by this subsection.
(g) In a condominium or planned community, if the agreement
to terminate provides that the real estate constituting the
common interest community is not to be sold following
termination, title to the common elements and, in a common
interest community containing only units having upper and lower
boundaries described in the declaration, title to all the real
estate in the common interest community, vests in the unit
owners upon termination as tenants in common in proportion to
their respective interest as provided in subsection (k), and
liens on the units shift accordingly. While the tenancy in
common exists, each unit owner and the unit owner's successors
in interest have an exclusive right to occupancy of the portion
of the real estate that formerly constituted the unit.
(h) The proceeds of any sale of real estate pursuant to
subsection (e), together with the assets of the association,
shall be held by the association as trustee for unit owners,
secured parties and other holders of liens on the units as their
interests may appear. Before distributing any proceeds, the
association shall have authority to deduct from the proceeds of
sale due with respect to the unit (i) unpaid assessments levied
by the association with respect to the unit, (ii) unpaid real
estate taxes or special assessments due with respect to the
unit, and (iii) the share of expenses of sale and winding up of
the association's affairs with respect to the unit.
(i) Following termination of a condominium or planned
community, creditors of the association holding liens on the
units perfected before termination may enforce those liens in
the same manner as any lien holder, in order of priority based
upon their times of perfection. All other creditors of the
association are to be treated as if they had perfected liens on
the units immediately before termination.
(j) In a cooperative, the declaration may provide that all
creditors of the association have priority over any interests of
unit owners and creditors of unit owners. In that event,
following termination, creditors of the association holding
liens on the cooperative which were perfected before termination
may enforce their liens in the same manner as any lien holder,
in order of priority based upon their times of perfection. All
other creditors of the association shall be treated as if they
had perfected a lien against the cooperative immediately before
termination. Unless the declaration provides that all creditors
of the association have that priority:
(1) the lien of each creditor of the association which was
perfected against the association before termination becomes,
upon termination, a lien against each unit owner's interest in
the unit as of the date the lien was perfected;
(2) any other creditor of the association is to be treated
upon termination as if the creditor had perfected a lien against
each unit owner's interest immediately before termination;
(3) the amount of the lien of an association's creditor
described in paragraphs (1) and (2) against each of the unit
owners' interest shall be proportionate to the ratio which each
unit's common expense liability bears to the common expense
liability of all of the units;
(4) the lien of each creditor of each unit owner which was
perfected before termination continues as a lien against that
unit owner's interest in the unit as of the date the lien was
perfected; and
(5) the assets of the association shall be distributed to
all unit owners and all lien holders as their interests may
appear in the order described in this section. Creditors of the
association are not entitled to payment from any unit owner in
excess of the amount of the creditor's lien against that unit
owner's interest.
(k) The respective interest of unit owners referred to in
subsections (e), (f), (g), (h) and (i) are as follows:
(1) Except as provided in paragraph (2), the respective
interests of unit owners are the fair market values of their
units, allocated interests, and any limited common elements
immediately before the termination, as determined by one or more
independent appraisers selected by the association. The
decision of the independent appraisers must be distributed to
the unit owners and becomes final unless disapproved within 30
days after distribution by unit owners of units to which 25
percent of the votes in the association are allocated. The
proportion of any unit's interest to that of all units is
determined by dividing the fair market value of that unit by the
total fair market values of all the units.
(2) If any unit or any limited common element is destroyed
to the extent that an appraisal of the fair market value thereof
before destruction cannot be made, the interests of all unit
owners are: (i) in a condominium, their respective common
element interests immediately before the termination, (ii) in a
cooperative, their respective ownership interests immediately
before the termination, and (iii) in a planned community, their
respective common expense liabilities immediately before the
termination.
(1) In a condominium or planned community, except as
provided in subsection (m), foreclosure or enforcement of a lien
or encumbrance against the entire common interest community does
not terminate, of itself, the common interest community, and
foreclosure or enforcement of a lien or encumbrance against a
portion of the common interest community does not withdraw that
portion from the common interest community.
(m) In a condominium or planned community, if a lien or
encumbrance against a portion of the real estate comprising the
common interest community has priority over the declaration and
the lien or encumbrance has not been partially released, the
parties foreclosing the lien or encumbrance, upon foreclosure,
may record an instrument excluding the real estate subject to
that lien or encumbrance from the common interest community.
(n) Following the termination of a common interest
community in accordance with this section, the board of
directors of the association shall cause the association to be
dissolved in accordance with law.
Sec. 10. Minnesota Statutes 1993 Supplement, section
515B.3-113, is amended to read:
515B.3-113 [INSURANCE.]
(a) Commencing not later than the time of the first
conveyance of a unit to a unit owner other than a declarant, the
association shall maintain, to the extent reasonably available:
(1) subject to subsection (b), property insurance (i) on
the common elements and, in a planned community, also on
property that must become common elements, (ii) for broad form
covered causes of loss, and (iii) in a total amount of not less
than the full insurable replacement cost of the insured
property, less deductibles, at the time the insurance is
purchased and at each renewal date, exclusive of items normally
excluded from property policies; and
(2) commercial general liability insurance against claims
and liabilities arising in connection with the ownership,
existence, use or management of the property in an amount, if
any, specified by the common interest community instruments or
otherwise deemed sufficient in the judgment of the board,
insuring the board, the association, the management agent, and
their respective employees, agents and all persons acting as
agents. The declarant shall be included as an additional
insured in its capacity as a unit owner or board member. The
unit owners shall be included as additional insureds but only
for claims and liabilities arising in connection with the
ownership, existence, use or management of the common elements.
The insurance shall cover claims of one or more insured parties
against other insured parties.
(b) In the case of a common interest community that
contains units sharing or having contiguous walls, siding or
roofs, the insurance maintained under subsection (a)(1) shall
include the units and the common elements. The insurance need
not cover improvements and betterments to the units installed by
unit owners, but if improvements and betterments are covered,
any increased cost may be assessed by the association against
the units affected. The association may, in the case of a claim
for damage to a unit or units, (i) pay the deductible amount as
a common expense, (ii) assess the deductible amount against the
units affected in any reasonable manner, or (iii) require the
unit owners of the units affected to pay the deductible amount
directly.
(c) If the insurance described in subsections (a) and (b)
is not reasonably available, the association shall promptly
cause notice of that fact to be hand delivered or sent prepaid
by United States mail to all unit owners. The declaration may
require the association to carry any other insurance, and the
association in any event may carry any other insurance it
considers appropriate to protect the association, the unit
owners or officers, directors or agents of the association.
(d) Insurance policies carried pursuant to subsections (a)
and (b) shall provide that:
(1) each unit owner and secured party is an insured person
under the policy with respect to liability arising out of the
unit owner's interest in the common elements or membership in
the association;
(2) the insurer waives its right to subrogation under the
policy against any unit owner of the condominium or members of
the unit owner's household and against the association and
members of the board of directors;
(3) no act or omission by any unit owner or secured party,
unless acting within the scope of authority on behalf of the
association, shall void the policy or be a condition to recovery
under the policy; and
(4) if at the time of a loss under the policy there is
other insurance in the name of a unit owner covering the same
property covered by the policy, the association's policy is
primary insurance.
(e) Any loss covered by the property policy under
subsection (a)(1) shall be adjusted by and with the association.
The insurance proceeds for that loss shall be payable to the
association, or to an insurance trustee designated by the
association for that purpose. The insurance trustee or the
association shall hold any insurance proceeds in trust for unit
owners and secured parties as their interests may appear. The
proceeds shall be disbursed first for the repair or restoration
of the damaged common elements and units. Unit owners and
secured parties are not entitled to receive any portion of the
proceeds unless there is a surplus of proceeds after the common
elements and units have been completely repaired or restored or
the common interest community is terminated.
(f) Unit owners may obtain insurance for personal benefit
in addition to insurance carried by the association.
(g) An insurer that has issued an insurance policy under
this section shall issue certificates or memoranda of insurance,
upon request, to any unit owner or secured party. The insurance
may not be canceled until 30 days after notice of the proposed
cancellation has been mailed to the association, each unit owner
and each secured party for an obligation to whom certificates of
insurance have been issued.
(h) Any portion of the common interest community which is
damaged or destroyed as the result of a loss covered by the
association's insurance shall be promptly repaired or replaced
by the association unless (i) the common interest community is
terminated and the association votes not to repair or replace
all or part thereof, (ii) repair or replacement would be illegal
under any state or local health or safety statute or ordinance,
or (iii) 80 percent of the unit owners, including every owner
and holder of a first mortgage on a unit or assigned limited
common element which will not be rebuilt, vote not to rebuild.
The cost of repair or replacement of the common elements in
excess of insurance proceeds and reserves shall be paid as a
common expense, and the cost of repair of a unit in excess of
insurance proceeds shall be paid by the respective unit owner.
(i) If less than the entire common interest community is
repaired or replaced, (i) the insurance proceeds attributable to
the damaged common elements shall be used to restore the damaged
area to a condition compatible with the remainder of the common
interest community, (ii) the insurance proceeds attributable to
units and limited common elements which are not rebuilt shall be
distributed to the owners of those units, including units to
which the limited common elements were assigned, and the secured
parties of those units, as their interests may appear, and (iii)
the remainder of the proceeds shall be distributed to all the
unit owners and secured parties as their interests may appear in
proportion to their common element interest in the case of a
condominium or in proportion to their common expense liability
in the case of a planned community or cooperative.
(j) If the unit owners and holders of first mortgages vote
not to rebuild a unit, that unit's entire common element
interest, votes in the association, and common expense liability
are automatically reallocated upon the vote as if the unit had
been condemned under section 515B.1-107, and the association
shall promptly prepare, execute and record an amendment to the
declaration reflecting the reallocations. Notwithstanding the
provisions of this subsection, if the common interest community
is terminated, insurance proceeds not used for repair or
replacement shall be distributed in the same manner as sales
proceeds pursuant to section 515B.2-119.
(k) The provisions of this section may be varied or waived
in the case of a common interest community in which all units
are restricted to nonresidential use.
Sec. 11. Minnesota Statutes 1993 Supplement, section
515B.3-116, is amended to read:
515B.3-116 [LIEN FOR ASSESSMENTS.]
(a) The association has a lien on a unit for any assessment
levied against that unit from the time the assessment becomes
due. If an assessment is payable in installments, the full
amount of the assessment is a lien from the time the first
installment thereof becomes due. Unless the declaration
otherwise provides, fees, charges, late charges, fines and
interest charges pursuant to section 515B.3-102(a)(10), (11) and
(12) are liens, and are enforceable as assessments, under this
section.
(b) A lien under this section is prior to all other liens
and encumbrances on a unit except (i) liens and encumbrances
recorded before the declaration and, in a cooperative, liens and
encumbrances which the association creates, assumes, or takes
subject to, (ii) any first mortgage on the unit, or, in a
cooperative, any first security interest encumbering only the
unit owner's interest in the unit, and (iii) liens for real
estate taxes and other governmental assessments or charges
against the unit. If a first mortgage on a unit is foreclosed,
the first mortgage was recorded after June 1, 1994, and no owner
redeems during the owner's period of redemption provided by
chapter 580, 581, or 582, the holder of the sheriff's
certificate of sale from the foreclosure of the first mortgage
shall take title to the unit subject to unpaid assessments for
common expenses levied pursuant to section 515B.3-115(a), (h)(1)
to (3), (i), and (l) which became due, without acceleration,
during the six months immediately preceding the first day
following the end of the owner's period of redemption. If a
first security interest encumbering a unit owner's interest in a
cooperative unit which is personal property is foreclosed, the
secured party or the purchaser at the sale shall take title to
the unit subject to unpaid assessments for common expenses
levied pursuant to section 515B.3-115(a), (h)(1) to (3), (i),
and (l) which became due, without acceleration, during the six
months immediately preceding the first day following either the
date of sale pursuant to section 336.9-504 or the date on which
the obligation of the unit owner is discharged pursuant to
section 336.9-505. This subsection shall not affect the
priority of mechanics' liens.
(c) Recording of the declaration constitutes record notice
and perfection of any lien under this section, and no further
recordation of any notice of or claim for the lien is required.
(d) Proceedings to enforce an assessment lien shall be
instituted within three years after the last installment of the
assessment becomes payable, or shall be barred.
(e) The unit owner of a unit at the time an assessment is
due shall be personally liable to the association for payment of
the assessment levied against the unit. If there are multiple
owners of the unit, they shall be jointly and severally liable.
(f) This section does not prohibit actions to recover sums
for which subsection (a) creates a lien nor prohibit an
association from taking a deed in lieu of foreclosure.
(g) The association shall furnish to a unit owner or the
owner's authorized agent upon written request of the unit owner
or the authorized agent a statement setting forth the amount of
unpaid assessments currently levied against the owner's unit.
If the unit owner's interest is real estate, the statement shall
be in recordable form. The statement shall be furnished within
ten business days after receipt of the request and is binding on
the association and every unit owner.
(h) The association's lien may be foreclosed as provided in
this subsection.
(1) In a condominium or planned community, the
association's lien may be foreclosed in a like manner as a
mortgage containing a power of sale pursuant to chapter 580, or
by action pursuant to chapter 581. The association shall have a
power of sale to foreclose the lien pursuant to chapter 580.
(2) In a cooperative whose unit owners' interests are real
estate, the association's lien shall be foreclosed in a like
manner as a mortgage on real estate as provided in paragraph (1).
(3) In a cooperative whose unit owners' interests in the
units are personal property, the association's lien shall be
foreclosed in a like manner as a security interest under article
9 of chapter 336. In any disposition pursuant to section
336.9-504 or retention pursuant to section 336.9-505, the rights
of the parties shall be the same as those provided by law,
except (i) notice of sale, disposition, or retention shall be
served on the unit owner 90 days prior to sale, disposition, or
retention, (ii) the association shall be entitled to its
reasonable costs and attorney fees not exceeding the amount
provided by section 582.01, subdivision 1a, (iii) the amount of
the association's lien shall be deemed to be adequate
consideration for the unit subject to disposition or retention,
notwithstanding the value of the unit, and (iv) the notice of
sale, disposition, or retention shall contain the following
statement in capital letters with the name of the association or
secured party filled in:
"THIS IS TO INFORM YOU THAT BY THIS NOTICE (fill in name of
association or secured party) HAS BEGUN PROCEEDINGS UNDER
MINNESOTA STATUTES, CHAPTER 515B, TO FORECLOSE ON YOUR INTEREST
IN YOUR UNIT FOR THE REASON SPECIFIED IN THIS NOTICE. YOUR
INTEREST IN YOUR UNIT WILL TERMINATE 90 DAYS AFTER SERVICE OF
THIS NOTICE ON YOU UNLESS BEFORE THEN:
(a) THE PERSON AUTHORIZED BY (fill in the name of
association or secured party) AND DESCRIBED IN THIS NOTICE TO
RECEIVE PAYMENTS RECEIVES FROM YOU:
(1) THE AMOUNT THIS NOTICE SAYS YOU OWE; PLUS
(2) THE COSTS INCURRED TO SERVE THIS NOTICE ON YOU; PLUS
(3) $500 TO APPLY TO ATTORNEYS FEES ACTUALLY EXPENDED OR
INCURRED; PLUS
(4) ANY ADDITIONAL AMOUNTS FOR YOUR UNIT BECOMING DUE TO
(fill in name of association or secured party) AFTER THE DATE OF
THIS NOTICE; OR
(b) YOU SECURE FROM A DISTRICT COURT AN ORDER THAT THE
FORECLOSURE OF YOUR RIGHTS TO YOUR UNIT BE SUSPENDED UNTIL YOUR
CLAIMS OR DEFENSES ARE FINALLY DISPOSED OF BY TRIAL, HEARING, OR
SETTLEMENT. YOUR ACTION MUST SPECIFICALLY STATE THOSE FACTS AND
GROUNDS THAT DEMONSTRATE YOUR CLAIMS OR DEFENSES.
IF YOU DO NOT DO ONE OR THE OTHER OF THE ABOVE THINGS
WITHIN THE TIME PERIOD SPECIFIED IN THIS NOTICE, YOUR OWNERSHIP
RIGHTS IN YOUR UNIT WILL TERMINATE AT THE END OF THE PERIOD, YOU
WILL LOSE ALL THE MONEY YOU HAVE PAID FOR YOUR UNIT, YOU WILL
LOSE YOUR RIGHT TO POSSESSION OF YOUR UNIT, YOU MAY LOSE YOUR
RIGHT TO ASSERT ANY CLAIMS OR DEFENSES THAT YOU MIGHT HAVE, AND
YOU WILL BE EVICTED. IF YOU HAVE ANY QUESTIONS ABOUT THIS
NOTICE, CONTACT AN ATTORNEY IMMEDIATELY."
(4) In any foreclosure pursuant to chapter 580, 581, or
582, the rights of the parties shall be the same as those
provided by law, except (i) the period of redemption for unit
owners shall be six months from the date of sale or a lesser
period authorized by law, (ii) in a foreclosure by advertisement
under chapter 580, the foreclosing party shall be entitled to
costs and disbursements of foreclosure, and attorneys fees in
the amount provided by section 582.01, subdivision 1a, (iii) in
a foreclosure by action under chapter 581, the foreclosing party
shall be entitled to costs and disbursements of foreclosure and
attorneys fees as the court shall determine, and (iv) the amount
of the association's lien shall be deemed to be adequate
consideration for the unit subject to foreclosure,
notwithstanding the value of the unit.
(i) If a holder of a sheriff's certificate of sale, prior
to the expiration of the period of redemption, pays any past due
or current assessments, or any other charges lienable as
assessments, with respect to the unit described in the sheriff's
certificate, then the amount paid shall be a part of the sum
required to be paid to redeem under section 582.03.
(j) In a cooperative, following foreclosure, the
association may bring an action for unlawful detainer against
the unit owner and any persons in possession of the unit, and in
that case section 504.02 shall not apply.
(k) An association may assign its lien rights in the same
manner as any other secured party.
Sec. 12. Minnesota Statutes 1993 Supplement, section
515B.3-117, is amended to read:
515B.3-117 [OTHER LIENS.]
(a) Except in a cooperative and except as otherwise
provided in this chapter or in a security instrument, an
individual unit owner may have the unit owner's unit released
from a lien if the unit owner pays the lienholder the portion of
the lien amount which the lien secures that is attributable to
the unit. Upon the receipt of payment, the lienholder shall
promptly deliver to the unit owner a recordable partial
satisfaction and release of lien releasing the unit from the
lien. The release shall be deemed to include a release of any
rights in the common elements appurtenant to the unit. The
portion of the amount which a lien secures that is attributable
to a unit owner's the unit shall be equal to the total amount of
which the lien secures multiplied by a percentage calculated by
dividing the common expense liability of attributable to the
unit owner's unit by the common expense liability of
attributable to all units which are subject to the lien against
which the lien has been recorded, or in the case of a lien under
subsection (b), the units against which the lien is permitted or
required to be recorded. At the request of a lien claimant or
unit owners, the association shall provide a written statement
of the percentage of common expense liability of attributable to
all units subject to a lien. After a unit owner's payment
pursuant to this section, the association may not assess the
unit for any common expense incurred thereafter in connection
with the satisfaction or defense against the lien.
(b) Labor performed or materials furnished for the
improvement of a unit shall be the basis for the filing
recording of a lien against that unit pursuant to the provisions
of chapter 514 but shall not be the basis for the filing
recording of a lien against the common elements. Labor
performed or materials furnished for the improvement of common
elements, if duly authorized by the association, shall be deemed
to be performed or furnished with the express consent of each
unit owner, and shall be the basis for the filing of a lien
against each unit perfected by recording a lien against all the
units in the common interest community pursuant to the
provisions of chapter 514, but shall not be the basis for
the filing recording of a lien against the common elements.
Where a lien is filed recorded against one or more the units for
labor performed or material furnished for the improvement of
common elements, the association shall be deemed to be the
authorized agent of the unit owners for purposes of receiving
the notice notices required under section sections 514.011 and
514.08, subdivision 1, clause (2).
(c) A security interest in a cooperative whose unit owners'
interests in the units are personal property may shall be
perfected by the filing of recording a financing statement in
the UCC filing section of the office of the recording officer
for the county in which the unit is located. In any disposition
by a secured party pursuant to section 336.9-504 or retention
pursuant to section 336.9-505, the rights of the parties shall
be the same as those provided by law, subject to the exceptions
and requirements set forth in section 515B.3-116(h)(3), and
except that the unit owner has the right to reinstate the debt
owing to the secured party by paying to the secured party, prior
to the effective date of the disposition or retention, the
amount which would be required to reinstate the debt under
section 580.30 if the unit were wholly real estate.
B
CONFORMING CHANGES
Sec. 13. Minnesota Statutes 1992, section 83.26,
subdivision 2, is amended to read:
Subd. 2. [GENERALLY; TRANSACTIONS.] Unless the method of
offer or sale is adopted for the purpose of evasion of sections
83.20 to 83.42, 83.43 and 83.44, the following transactions are
exempt from sections 83.23, 83.24, 83.25, 83.28, 83.29, and
83.30:
(a) the offer or sale of an interest in subdivided land by
an owner, other than the subdivider, acting as principal in a
single or isolated transaction;
(b) the offer or sale of all of the subdivided lands within
a subdivision in a single transaction to any person;
(c) the offer or sale of subdivided land pursuant to an
order of competent jurisdiction, other than a court of
bankruptcy;
(d) the offer or sale of subdivided land consisting of not
more than ten separate lots, units, parcels, or interests in the
aggregate;
(e) the offer or sale of subdivided lands which have been
registered under section 83.23, subdivision 2, if there are no
more than ten separate lots, units, parcels, or interests
remaining to be sold and no material change has occurred in the
information on file with the commissioner;
(f) the offer and sale of subdivided land located within
the corporate limits of a municipality as defined in section
462.352, subdivision 2, which municipality has adopted
subdivision regulations as defined in section 462.352, except
those lands described in section 83.20, subdivision 13;
(g) the offer and sale of apartments or condominiums
condominium units as defined in chapters 515 and 515A, and units
in common interest communities as defined in chapter 515B;
(h) the offer and sale of subdivided lands used primarily
for agricultural purposes provided each parcel is at least ten
acres in size;
(i) the offer or sale of improved lots if:
(1) the subdivider has filed with the commissioner, no
later than ten business days prior to the date of the first
sale, a written notice of its intention to offer or sell
improved lots, which notice shall be accompanied by a fee of
$50, together with a copy of the public offering statement
accepted by the situs state and the standard purchase agreement
which documents are required to be supplied by the subdivider to
the purchaser; and
(2) the subdivider deposits all downpayments in an escrow
account until all obligations of the subdivider to the
purchaser, which are pursuant to the terms of the purchase
agreement to be performed prior to the closing, have been
performed. The subdivider shall provide the purchaser with a
purchase receipt for the downpayment paid, a copy of the escrow
agreement and the name, address, and telephone number of the
escrow agent. The escrow agent shall be a bank located in
Minnesota. All downpayments shall be deposited in the escrow
account within two business days after receipt.
The commissioner may by rule or order suspend, revoke, or
further condition the exemptions contained in clauses (f), (g),
(h), and (i) or may require such further information as may be
necessary for the protection of purchasers.
The rulemaking authority in this subdivision does not
include emergency rulemaking authority pursuant to chapter 14.
Sec. 14. Minnesota Statutes 1993 Supplement, section
508.71, subdivision 7, is amended to read:
Subd. 7. [CONDOMINIUMS.] Prior to filing with the
registrar of titles a declaration or bylaws for a condominium,
or an amendment to the declaration adding additional real estate
to the condominium, the declarant shall have or bylaws, a
determination shall be made by an order of court in a proceeding
subsequent to initial registration or by a written directive of
the examiner of titles that the documents comply with the
requirements of the applicable condominium statute.
Sec. 15. [EFFECTIVE DATE.]
This article is effective June 1, 1994.
ARTICLE 5
TERMINATION OF TIME SHARE INTEREST
Section 1. Minnesota Statutes 1992, section 508.58,
subdivision 2, is amended to read:
Subd. 2. [EXAMINER OF TITLES DIRECTIVE.] Any person who
has become the owner in fee of registered land, or any part of
the land, pursuant to a mortgage foreclosure by action under
chapter 581 is entitled to a new certificate of title for the
land described in the sheriff's certificate of sale or so much
of the land as may be described in the certificate of title,
after the redemption period expires. The registrar shall enter
the new certificate of title and issue a new owner's duplicate
certificate only pursuant to the court order provided in
subdivision 1 or upon the written directive of the examiner of
titles as to the legal sufficiency of the mortgage foreclosure
proceeding. The directive of the examiner of titles also must
specify the instruments the registrar shall omit from the new
certificate of title by virtue of the foreclosure.
At the request of a registered owner or other person in
interest, the examiner of titles by a written directive may
direct the registrar of titles to show by memorial on a
certificate of title that a contract for the conveyance of a
time share interest, as defined in section 515B.1-103(32), has
been terminated in accordance with chapter 559. The directive
also must specify the instruments the registrar shall omit from
the next certificate of title because of the cancellation.
Presented to the governor April 5, 1994
Signed by the governor April 7, 1994, 11:02 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes