Boards requirement to provide declarants with disclosure documents at no cost

A bill for an act

relating to common interest communities; requiring boards to provide declarants

with disclosure documents at no cost; amending Minnesota Statutes 2024, section

515B.4-101.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 515B.4-101, is amended to read:

515B.4-101 APPLICABILITY; DELIVERY OF DISCLOSURE STATEMENT.

(a) Sections
515B.4-101
through
515B.4-118
apply to all units subject to this chapter,

except as provided in subsection (c) or as modified or waived by written agreement of

purchasers of a unit which is restricted to nonresidential use.

(b) Subject to subsections (a) and (c), a declarant who offers a unit to a purchaser shall

deliver to the purchaser a current disclosure statement which complies with the requirements

of section
515B.4-102
. The disclosure statement shall include any material amendments to

the disclosure statement made prior to the conveyance of the unit to the purchaser. The

declarant shall be liable to the purchaser to whom it delivered the disclosure statement for

any false or misleading statement set forth therein or for any omission of a material fact

therefrom.

(c) Neither a disclosure statement nor a resale disclosure certificate need be prepared or

delivered in the case of:

(1) a gratuitous transfer;

(2) a transfer pursuant to a court order;

(3) a transfer to a government or governmental agency;

(4) a transfer to a secured party by foreclosure or deed in lieu of foreclosure;

(5) an option to purchase a unit, until exercised;

(6) a transfer to a person who "controls" or is "controlled by," the grantor as those terms

are defined with respect to a declarant under section
515B.1-103
(2);

(7) a transfer by inheritance;

(8) a transfer of special declarant rights under section
515B.3-104
; or

(9) a transfer in connection with a change of form of common interest community under

section
515B.2-123
.

(d) A purchase agreement for a unit shall contain the following notice: "The following

notice is required by Minnesota Statutes. The purchaser is entitled to receive a disclosure

statement or resale disclosure certificate, as applicable. The disclosure statement or resale

disclosure certificate contains important information regarding the common interest

community and the purchaser's cancellation rights."

(e) The sale, to the initial occupant, of a platted lot or other parcel of real estate (i) which

is or may be subject to a master declaration, (ii) which is intended for residential occupancy,

and (iii) which does not and is not intended to constitute a unit, shall be subject to the

following requirements:

(1) The purchase agreement for the lot or other parcel shall contain the following notice:

"The following notice is required by Minnesota Statutes: The real estate to be conveyed

under this agreement is or may be subject to a master association as defined in Minnesota

Statutes, chapter
515B
. The master developer is required to provide to the buyer, within ten

days after receipt of a request from the buyer or the buyer's authorized representative, a

statement containing the information required by Minnesota Statutes, section

515B.4-102
(a)(20), with respect to the master association. The statement contains important

information regarding the master association. The name, address, and telephone number of

the master developer are [insert information]."

(2) A master developer shall, within ten days after receipt of a request described in clause

(1), furnish to the requesting person the information required to be provided by section

515B.4-102
(a)(20).

(f) A claim by a buyer based upon a failure to comply with subsection (e):

(1) shall be limited to legal, and not equitable, remedies; or

(2) shall be barred unless it is commenced within the time period specified in section

515B.4-115
(a).

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(g) At no cost to the declarant, a board must provide to the declarant any document the

declarant is required to deliver to a purchaser under this chapter.

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