1.1 A bill for an act
1.2 relating to housing; requiring plain-language explanations for condo associations
1.3 and homeowners associations; appropriating money for the creation of a guide to
1.4 explain the laws governing common interest communities and homeowners
1.5 associations; amending Minnesota Statutes 2024, sections 515B.4-102;
1.6 515B.4-1021; 515B.4-107; proposing coding for new law in Minnesota Statutes,
1.7 chapter 515B.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. [515B.3-1035] BOARD OF DIRECTORS; TRAINING.
1.10 Each member of the board of directors must, upon election or reelection to the board,
1.11review the governing documents for the association and review the plain-language
1.12explanation on applicable laws and common provisions for governing documents for common
1.13interest communities and homeowners associations. Each member of the board is responsible
1.14for sharing an electronic or print copy of the plain-language explanation on applicable laws
1.15and common provisions for governing documents when a member unit owner requests
1.16assistance in understanding their rights or responsibilities under the governing documents
1.17or this chapter of law.
1.18 EFFECTIVE DATE.This section is effective August 1, 2026.
1.19 Sec. 2. Minnesota Statutes 2024, section 515B.4-102, is amended to read:
1.20 515B.4-102 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
1.21CREATED BEFORE AUGUST 1, 2010.
1.22 (a) A disclosure statement shall fully and accurately disclose:
1.23 (1) the name and, if available, the number of the common interest community;
1Sec. 2.
25-04832 as introduced03/13/25 REVISOR MS/ES
SENATE
STATE OF MINNESOTA
S.F. No. 3200NINETY-FOURTH SESSION
(SENATE AUTHORS: PHA)
OFFICIAL STATUSD-PGDATE
Introduction and first reading04/01/2025
Referred to Judiciary and Public Safety 2.1 (2) the name and principal address of the declarant;
2.2 (3) the number of units which the declarant has the right to include in the common
2.3interest community and a statement that the common interest community is either a
2.4condominium, cooperative, or planned community;
2.5 (4) a general description of the common interest community, including, at a minimum,
2.6(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
2.7construction, (iv) whether the common interest community involves new construction or
2.8rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
2.9before it was added to the common interest community and the nature of the occupancy,
2.10and (vi) a general description of any roads, trails, or utilities that are located on the common
2.11elements and that the association or a master association will be required to maintain;
2.12 (5) declarant's schedule of commencement and completion of construction of any
2.13buildings and other improvements that the declarant is obligated to build pursuant to section
2.14515B.4-117;
2.15 (6) any expenses or services, not reflected in the budget, that a declarant pays or provides,
2.16which may become a common expense; the projected common expense attributable to each
2.17of those expenses or services; and an explanation of declarant's limited assessment liability
2.18under section 515B.3-115(b);
2.19 (7) any initial or special fee due from the purchaser to the declarant or the association
2.20at closing, together with a description of the purpose and method of calculating the fee;
2.21 (8) identification of any liens, defects, or encumbrances which will continue to affect
2.22the title to a unit or to any real property owned by the association after the contemplated
2.23conveyance;
2.24 (9) a description of any financing offered or arranged by the declarant;
2.25 (10) a statement as to whether application has been made for any project approvals for
2.26the common interest community from the Federal National Mortgage Association (FNMA),
2.27Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
2.28Development (HUD) or Department of Veterans Affairs (VA), and which, if any, such final
2.29approvals have been received;
2.30 (11) the terms of any warranties provided by the declarant, including copies of sections
2.31515B.4-112 through 515B.4-115, and any other applicable statutory warranties, and a
2.32statement of any limitations on the enforcement of the applicable warranties or on damages;
2Sec. 2.
25-04832 as introduced03/13/25 REVISOR MS/ES 3.1 (12) a statement that: (i) within ten days after the receipt of a disclosure statement, a
3.2purchaser may cancel any contract for the purchase of a unit from a declarant; provided,
3.3that the right to cancel terminates upon the purchaser's voluntary acceptance of a conveyance
3.4of the unit from the declarant or by the purchaser agreeing to modify or waive the right to
3.5cancel in the manner provided by section 515B.4-106(a); (ii) if a purchaser receives a
3.6disclosure statement more than ten days before signing a purchase agreement, the purchaser
3.7cannot cancel the purchase agreement; and (iii) if a declarant obligated to deliver a disclosure
3.8statement fails to deliver a disclosure statement which substantially complies with this
3.9chapter to a purchaser to whom a unit is conveyed, the declarant shall be liable to the
3.10purchaser as provided in section 515B.4-106(d);
3.11 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
3.12actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
3.13the association is a party, and the status of those lawsuits which are material to the common
3.14interest community or the unit being purchased;
3.15 (14) a statement (i) describing the conditions under which earnest money will be held
3.16in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
3.17earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
3.18to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
3.19 (15) a detailed description of the insurance coverage provided by the association for the
3.20benefit of unit owners, including a statement as to which, if any, of the items referred to in
3.21section 515B.3-113, subsection (b), are insured by the association;
3.22 (16) any current or expected fees or charges, other than assessments for common
3.23expenses, to be paid by unit owners for the use of the common elements or any other
3.24improvements or facilities;
3.25 (17) the financial arrangements, including any contingencies, which have been made to
3.26provide for completion of all improvements that the declarant is obligated to build pursuant
3.27to section 515B.4-118, or a statement that no such arrangements have been made;
3.28 (18) in a cooperative: (i) whether the unit owners will be entitled for federal and state
3.29tax purposes, to deduct payments made by the association for real estate taxes and interest
3.30paid to the holder of a security interest encumbering the cooperative; (ii) a statement as to
3.31the effect on the unit owners if the association fails to pay real estate taxes or payments due
3.32the holder of a security interest encumbering the cooperative; and (iii) the principal amount
3.33and a general description of the terms of any blanket mortgage, contract for deed, or other
3.34blanket security instrument encumbering the cooperative property;
3Sec. 2.
25-04832 as introduced03/13/25 REVISOR MS/ES 4.1 (19) a statement: (i) that real estate taxes for the unit or any real property owned by the
4.2association are not delinquent or, if there are delinquent real estate taxes, describing the
4.3property for which the taxes are delinquent, stating the amount of the delinquent taxes,
4.4interest and penalties, and stating the years for which taxes are delinquent, and (ii) setting
4.5forth the amount of real estate taxes, including the amount of any special assessment certified
4.6for payment with the real estate taxes, due and payable with respect to the unit in the year
4.7in which the disclosure statement is given, if real estate taxes have been separately assessed
4.8against the unit;
4.9 (20) if the association or the purchaser of the unit will be a member of a master
4.10association, a statement to that effect, and all of the following information with respect to
4.11the master association: (i) a copy of the master declaration, the articles of incorporation,
4.12bylaws, and rules and regulations for the master association, together with any amendments
4.13thereto; (ii) the name, address and general description of the master association, including
4.14a general description of any other association, unit owners, or other persons which are or
4.15may become members; (iii) a description of any nonresidential use permitted on any property
4.16subject to the master association; (iv) a statement as to the estimated maximum number of
4.17associations, unit owners or other persons which may become members of the master
4.18association, and the degree and period of control of the master association by a declarant
4.19or other person; (v) a description of any facilities intended for the benefit of the members
4.20of the master association and not located on property owned or controlled by a member or
4.21the master association; (vi) the financial arrangements, including any contingencies, which
4.22have been made to provide for completion of the facilities referred to in subsection (v), or
4.23a statement that no arrangements have been made; (vii) any current balance sheet of the
4.24master association and a projected or current annual budget, as applicable, which budget
4.25shall include with respect to the master association those items in paragraph (23), clauses
4.26(i) through (iii), and the projected monthly common expense assessment for each type of
4.27unit, lot, or other parcel of real estate which is or is planned to be subject to assessment;
4.28(viii) a description of any expenses or services not reflected in the budget, paid for or
4.29provided by a declarant or a person executing the master declaration, which may become
4.30an expense of the master association in the future; (ix) a description of any powers delegated
4.31to and accepted by the master association pursuant to section 515B.2-121(f)(2); (x)
4.32identification of any liens, defects or encumbrances that will continue to affect title to
4.33property owned or operated by the master association for the benefit of its members; (xi)
4.34the terms of any warranties provided by any person for construction of facilities in which
4.35the members of the master association have or may have an interest, and any known defects
4.36in the facilities which would violate the standards described in section 515B.4-112(b); (xii)
4Sec. 2.
25-04832 as introduced03/13/25 REVISOR MS/ES 5.1a statement disclosing, after inquiry of the master association, any unsatisfied judgments
5.2or lawsuits to which the master association is a party, and the status of those lawsuits which
5.3are material to the master association; (xiii) a description of any insurance coverage provided
5.4for the benefit of its members by the master association; and (xiv) any current or expected
5.5fees or charges, other than assessments by the master association, to be paid by members
5.6of the master association for the use of any facilities intended for the benefit of the members;
5.7 (21) a statement as to whether the unit will be substantially completed at the time of
5.8conveyance to a purchaser, and if not substantially completed, who is responsible to complete
5.9and pay for the construction of the unit;
5.10 (22) a plain-language explanation on applicable laws and common provisions for
5.11governing documents for common interest communities and homeowners associations and
5.12a copy of the declaration and any amendments thereto (exclusive of the CIC plat); any other
5.13recorded covenants, conditions, restrictions, or reservations affecting the common interest
5.14community; the articles of incorporation, bylaws and any rules or regulations of the
5.15association; any agreement excluding or modifying any implied warranties; any agreement
5.16reducing the statute of limitations for the enforcement of warranties; any contracts or leases
5.17to be signed by purchaser at closing; and a brief narrative description of any (i) contracts
5.18or leases that are or may be subject to cancellation by the association under section
5.19515B.3-105 and (ii) any material agreements entered into between the declarant and a
5.20governmental entity that affect the common interest community; and
5.21 (23) a balance sheet for the association, current within 90 days; a projected annual budget
5.22for the association; and a statement identifying the party responsible for the preparation of
5.23the budget. The budget shall assume that all units intended to be included in the common
5.24interest community, based upon the declarant's good faith estimate, have been subjected to
5.25the declaration; provided, that additional budget portrayals based upon a lesser number of
5.26units are permitted. The budget shall include, without limitation: (i) a statement of the
5.27amount included in the budget as a reserve for replacement; (ii) a statement of any other
5.28reserves; (iii) the projected common expense for each category of expenditures for the
5.29association; (iv) the projected monthly common expense assessment for each type of unit;
5.30and (v) a footnote or other reference to those components of the common interest community
5.31the maintenance, repair, or replacement of which the budget assumes will be funded by
5.32assessments under section 515B.3-115(e), rather than by assessments included in the
5.33association's annual budget, and a statement referencing section 515B.3-115(e)(1) or (2),
5.34as the source of funding. If, based upon the association's then current budget, the monthly
5.35common expense assessment for the unit at the time of conveyance to the purchaser is
5Sec. 2.
25-04832 as introduced03/13/25 REVISOR MS/ES 6.1anticipated to exceed the monthly assessment stated in the budget, a statement to such effect
6.2shall be included.
6.3 (b) A declarant shall promptly amend the disclosure statement to reflect any material
6.4change in the information required by this chapter.
6.5 (c) The master association, within ten days after a request by a declarant, a holder of
6.6declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
6.7representative of any of them, shall furnish the information required to be provided by
6.8subsection (a)(20). A declarant or other person who provides information pursuant to
6.9subsection (a)(20) is not liable to the buyer for any erroneous information if the declarant
6.10or other person: (i) is not an affiliate of or related in any way to a person authorized to
6.11appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
6.12actual knowledge that the information is incorrect.
6.13 (d) This section applies only to common interest communities created before August 1,
6.142010.
6.15 EFFECTIVE DATE.This section is effective August 1, 2026, and applies to disclosures
6.16provided on or after that date.
6.17 Sec. 3. Minnesota Statutes 2024, section 515B.4-1021, is amended to read:
6.18 515B.4-1021 DISCLOSURE STATEMENT; GENERAL PROVISIONS; CIC
6.19CREATED ON OR AFTER AUGUST 1, 2010.
6.20 (a) A disclosure statement shall fully and accurately disclose:
6.21 (1) the name and, if available, the number of the common interest community;
6.22 (2) the name and principal address of each declarant holding any special declarant rights;
6.23a description of the special declarant rights held by each declarant; a description of the units
6.24or additional real estate to which the respective special declarant rights apply; and a copy
6.25of any recorded transfer of special declarant rights pursuant to section 515B.3-104(a), or
6.26any instrument recorded pursuant to section 515B.3-104(b), (g), or (h);
6.27 (3) the total number of units which all declarants have the right to include in the common
6.28interest community and a statement that the common interest community is either a
6.29condominium, cooperative, or planned community;
6.30 (4) a general description of the common interest community, including, at a minimum,
6.31(i) the number of buildings, (ii) the number of dwellings per building, (iii) the type of
6.32construction, (iv) whether the common interest community involves new construction or
6Sec. 3.
25-04832 as introduced03/13/25 REVISOR MS/ES 7.1rehabilitation, (v) whether any building was wholly or partially occupied, for any purpose,
7.2before it was added to the common interest community, and the nature of the occupancy,
7.3(vi) a general description of any roads, trails, or utilities that are located on the common
7.4elements and that the association or master association will be required to maintain, (vii) a
7.5description of any declarant licensing rights under section 515B.2-109(e), and (viii) the
7.6initial maintenance plan, initial maintenance schedule, and maintenance budget under section
7.7515B.3-107(b). The initial maintenance plan prepared by the declarant must be based on
7.8the best available information listing all building elements to which the plan will apply and
7.9the generally accepted standards of maintenance on which the plan is based. The initial plan
7.10must be dated and signed by the declarant and be fully funded by the initial budget provided
7.11by the declarant;
7.12 (5) declarant's schedule of commencement and completion of construction of any
7.13buildings and other improvements that the declarant is obligated to build pursuant to section
7.14515B.4-117;
7.15 (6) any expenses or services, not reflected in the budget, that the declarant pays or
7.16provides, which may become a common expense; the projected common expense attributable
7.17to each of those expenses or services; a description of any alternate common expense plan
7.18under section 515B.3-115(a)(2)(i); and, if the declaration provides for an alternate common
7.19expense plan, either (i) a statement that the alternate common expense plan will have no
7.20effect on the level of services or amenities anticipated by the association's budget or disclosed
7.21in the disclosure statement, or (ii) a statement describing how the services or amenities may
7.22be affected;
7.23 (7) any initial or special fee due from the purchaser to the declarant or the association
7.24at closing, together with a description of the purpose and method of calculating the fee;
7.25 (8) identification of any liens, defects, or encumbrances which will continue to affect
7.26the title to a unit or to any real property owned by the association after the contemplated
7.27conveyance;
7.28 (9) a description of any financing offered or arranged by the declarant;
7.29 (10) a statement as to whether application has been made for any project approvals for
7.30the common interest community from the Federal National Mortgage Association (FNMA),
7.31Federal Home Loan Mortgage Corporation (FHLMC), Department of Housing and Urban
7.32Development (HUD), or Department of Veterans Affairs (VA), and which, if any, such
7.33final approvals have been received;
7Sec. 3.
25-04832 as introduced03/13/25 REVISOR MS/ES 8.1 (11) the terms of any warranties provided by the declarant, including copies of sections
8.2515B.4-112 to 515B.4-115, and any other applicable statutory warranties, and a statement
8.3of any limitations on the enforcement of the applicable warranties or on damages;
8.4 (12) a statement that:
8.5 (i) within ten days after the receipt of a disclosure statement, a purchaser may cancel
8.6any contract for the purchase of a unit from a declarant; provided, that the right to cancel
8.7terminates upon the purchaser's voluntary acceptance of a conveyance of the unit from the
8.8declarant or by the purchaser agreeing to modify or waive the right to cancel in the manner
8.9provided by section 515B.4-106(a);
8.10 (ii) if a purchaser receives a disclosure statement more than ten days before signing a
8.11purchase agreement, the purchaser cannot cancel the purchase agreement; and
8.12 (iii) if a declarant obligated to deliver a disclosure statement fails to deliver a disclosure
8.13statement which substantially complies with this chapter to a purchaser to whom a unit is
8.14conveyed, the declarant shall be liable to the purchaser as provided in section 515B.4-106(d);
8.15 (13) a statement disclosing to the extent of the declarant's or an affiliate of a declarant's
8.16actual knowledge, after reasonable inquiry, any unsatisfied judgments or lawsuits to which
8.17the association is a party, and the status of those lawsuits which are material to the common
8.18interest community or the unit being purchased;
8.19 (14) a statement (i) describing the conditions under which earnest money will be held
8.20in and disbursed from the escrow account, as set forth in section 515B.4-109, (ii) that the
8.21earnest money will be returned to the purchaser if the purchaser cancels the contract pursuant
8.22to section 515B.4-106, and (iii) setting forth the name and address of the escrow agent;
8.23 (15) a detailed description of the insurance coverage provided by the association for the
8.24benefit of unit owners, including a statement as to which, if any, of the items referred to in
8.25section 515B.3-113(b), are insured by the association;
8.26 (16) any current or expected fees or charges, other than assessments for common
8.27expenses, to be paid by unit owners for the use of the common elements or any other
8.28improvements or facilities;
8.29 (17) the financial arrangements, including any contingencies, which have been made to
8.30provide for completion of all improvements that the declarant is obligated to build pursuant
8.31to section 515B.4-118, or a statement that no such arrangements have been made;
8.32 (18) in a cooperative:
8Sec. 3.
25-04832 as introduced03/13/25 REVISOR MS/ES 9.1 (i) whether the unit owners will be entitled, for federal and state tax purposes, to deduct
9.2payments made by the association for real estate taxes and interest paid to the holder of a
9.3security interest encumbering the cooperative;
9.4 (ii) a statement as to the effect on the unit owners if the association fails to pay real estate
9.5taxes or payments due the holder of a security interest encumbering the cooperative; and
9.6 (iii) the principal amount and a general description of the terms of any blanket mortgage,
9.7contract for deed, or other blanket security instrument encumbering the cooperative property;
9.8 (19) a statement:
9.9 (i) that real estate taxes for the unit or any real property owned by the association are
9.10not delinquent or, if there are delinquent real estate taxes, describing the property for which
9.11the taxes are delinquent, stating the amount of the delinquent taxes, interest, and penalties,
9.12and stating the years for which taxes are delinquent; and
9.13 (ii) setting forth the amount of real estate taxes, including the amount of any special
9.14assessment certified for payment with the real estate taxes, due and payable with respect to
9.15the unit in the year in which the disclosure statement is given, if real estate taxes have been
9.16separately assessed against the unit;
9.17 (20) if the unit or other parcel of real estate being purchased is or may be subject to a
9.18master declaration at the time of the conveyance from the declarant to the purchaser, a
9.19statement to that effect, and all of the following information with respect to the master
9.20association:
9.21 (i) copies of the following documents (which may be in proposed form if the master
9.22declaration has not been recorded): the master declaration, the articles of incorporation,
9.23bylaws, and rules and regulations for the master association, together with any amendments
9.24thereto;
9.25 (ii) the name and address of the master developer, and the name, address, and general
9.26description of the master association, including a general description of any other association,
9.27unit owners, or other persons which are or may become members;
9.28 (iii) a description of any nonresidential use permitted on any property subject to the
9.29master declaration;
9.30 (iv) a statement as to the estimated maximum number of associations, unit owners, or
9.31other persons which may become members of the master association, and a description of
9.32any period of control of the master association and rights to appoint master association
9.33directors by a master developer or other person pursuant to section 515B.2-121(c);
9Sec. 3.
25-04832 as introduced03/13/25 REVISOR MS/ES 10.1 (v) a description of any facilities intended for the benefit of the members of the master
10.2association and not located on property owned or controlled by a member of the master
10.3association;
10.4 (vi) the financial arrangements, including any contingencies, which have been made to
10.5provide for completion of the facilities referred to in subsection (v), or a statement that no
10.6arrangements have been made;
10.7 (vii) any current balance sheet of the master association and a projected or current annual
10.8budget, as applicable, which budget shall include with respect to the master association
10.9those items in paragraph (23), clauses (i) through (iii), and the projected monthly or other
10.10periodic common expense assessment payment for each type of unit, lot, or other parcel of
10.11real estate which is or is planned to be subject to assessment;
10.12 (viii) a description of any expenses or services not reflected in the budget, paid for or
10.13provided by a master developer or another person executing the master declaration, which
10.14may become an expense of the master association in the future;
10.15 (ix) a description of any powers delegated to and accepted by the master association
10.16pursuant to section 515B.2-121(e)(2);
10.17 (x) identification of any liens, defects, or encumbrances that will continue to affect title
10.18to property owned or operated by the master association for the benefit of its members;
10.19 (xi) the terms of any warranties provided by any person for construction of facilities in
10.20which the members of the master association have or may have an interest, and any known
10.21defects in the facilities which would violate the standards described in section
10.22515B.4-113(b)(2);
10.23 (xii) a statement disclosing, after inquiry of the master association, any unsatisfied
10.24judgments or lawsuits to which the master association is a party, and the status of those
10.25lawsuits which are material to the master association;
10.26 (xiii) a description of any insurance coverage provided for the benefit of its members
10.27by the master association; and
10.28 (xiv) any current or expected fees or charges, other than assessments by the master
10.29association, to be paid by members of the master association for the use of any facilities
10.30intended for the benefit of the members;
10.31 (21) a statement as to whether the unit will be substantially completed at the time of
10.32conveyance to a purchaser, and, if not substantially completed, who is responsible to complete
10.33and pay for the construction of the unit;
10Sec. 3.
25-04832 as introduced03/13/25 REVISOR MS/ES 11.1 (22) a plain-language explanation on applicable laws and common provisions for
11.2governing documents for common interest communities and homeowners associations and
11.3copies of the following documents (which may be in proposed form if the declaration has
11.4not been recorded): the declaration and any supplemental declaration, and any amendments
11.5thereto (exclusive of the CIC plat); any other recorded covenants, conditions, restrictions,
11.6and reservations affecting the common interest community; the articles of incorporation,
11.7bylaws, and any rules or regulations of the association; the names of the current members
11.8of the association's board of directors; any agreement excluding or modifying any implied
11.9warranties; any agreement reducing the statute of limitations for the enforcement of
11.10warranties; any contracts or leases to be signed by the purchaser at closing; and a description
11.11of any material contracts, leases, or other agreements affecting the common interest
11.12community; and
11.13 (23) a balance sheet for the association, following the creation of the association, current
11.14within 90 days; a projected annual budget for the association; and a statement identifying
11.15the party responsible for the preparation of the budget. The budget shall assume that all
11.16units intended to be included in the common interest community, based upon the declarant's
11.17good faith estimate, have been subjected to the declaration; provided, that additional budget
11.18portrayals based upon a lesser number of units are permitted. The budget shall include,
11.19without limitation:
11.20 (i) a statement of the amount included in the budget as a reserve for replacement, the
11.21components of the common interest community for which the reserves are budgeted, and
11.22the amounts of the reserves, if any, that are allocated for the replacement of each of those
11.23components;
11.24 (ii) a statement of any other reserves;
11.25 (iii) the projected common expense for each category of expenditures for the association;
11.26 (iv) the projected monthly common expense assessment for each type of unit;
11.27 (v) a statement as to the components of the common interest community whose
11.28replacement will be funded by assessments under section 515B.3-115(c) or (e), rather than
11.29by replacement reserves as approved pursuant to section 515B.3-114(a). If, based upon the
11.30association's then-current budget, the monthly common expense assessment for the unit at
11.31the time of conveyance to the purchaser is anticipated to exceed the monthly assessment
11.32stated in the budget, a statement to such effect shall be included.
11.33 (b) A declarant shall promptly amend the disclosure statement to reflect any material
11.34change in the information required by this chapter.
11Sec. 3.
25-04832 as introduced03/13/25 REVISOR MS/ES 12.1 (c) The master association, within ten days after a request by a declarant, a holder of
12.2declarant rights, or a buyer referred to in section 515B.4-101(e), or the authorized
12.3representative of any of them, shall furnish the information required to be provided by
12.4subsection (a)(20). A declarant or other person who provides information pursuant to
12.5subsection (a)(20), is not liable to the buyer for any erroneous information if the declarant
12.6or other person: (i) is not an affiliate of or related in any way to a person authorized to
12.7appoint the master association board pursuant to section 515B.2-121(c)(3), and (ii) has no
12.8actual knowledge that the information is incorrect.
12.9 (d) This section applies only to common interest communities created on or after August
12.101, 2010.
12.11 EFFECTIVE DATE.This section is effective August 1, 2026, and applies to disclosures
12.12provided on or after that date.
12.13Sec. 4. Minnesota Statutes 2024, section 515B.4-107, is amended to read:
12.14 515B.4-107 RESALE OF UNITS.
12.15 (a) In the event of a resale of a unit by a unit owner other than a declarant, unless exempt
12.16under section 515B.4-101(c), the unit owner shall furnish to a purchaser, before execution
12.17of any purchase agreement for a unit or otherwise before conveyance, the following
12.18documents relating to the association or to the master association, if applicable:
12.19 (1) the plain-language explanation on applicable laws and common provisions for
12.20governing documents for common interest communities and homeowners associations, as
12.21well as copies of the declaration (other than any CIC plat), the articles of incorporation and
12.22bylaws, any rules and regulations, and any amendments or supplemental declarations;
12.23 (2) copies of the master declaration, articles of incorporation, bylaws, and rules and
12.24regulations, if the common interest community is subject to a master declaration; and
12.25 (3) a resale disclosure certificate from the association dated not more than 90 days prior
12.26to the date of the purchase agreement or the date of conveyance, whichever is earlier,
12.27containing the information set forth in subsection (b).
12.28 (b) The resale disclosure certificate must be in substantially the following form:
12.29 COMMON INTEREST COMMUNITY
12.30 RESALE DISCLOSURE CERTIFICATE
12.31Name of Common Interest Community:................................................................................
12.32Name of Association:.............................................................................................................
12Sec. 4.
25-04832 as introduced03/13/25 REVISOR MS/ES 13.1Address of Association:.........................................................................................................
13.2Unit Number(s) (include principal unit and any garage, storage, or other auxiliary units):
13.3 Common elements licensed under Minnesota Statutes, section 515B.2-109(e):
13.4................................................................................................................................................
13.5................................................................................................................................................
13.6 The following information is furnished by the association named above according to
13.7Minnesota Statutes, section 515B.4-107.
13.8 1. There is no right of first refusal or other restraint on the free alienability of the above
13.9unit(s) contained in the declaration, bylaws, rules and regulations, or any amendment to
13.10them, except as follows:.........................................................................................................
13.11................................................................................................................................................
13.12................................................................................................................................................
13.13................................................................................................................................................
13.14 2. The following periodic installments of common expense assessments and special
13.15assessments are payable with respect to the above unit(s):
Due:........................................$.............Annual assessment installments:13.16 a.
Due:........................................$.............Special assessment installments:13.17 b.
Unpaid assessments, fines, or other charges:13.18 c.
$.............Annual13.19 (1)
$.............Special13.20 (2)
$.............Fines13.21 (3)
$.............Other Charges13.22 (4)
The association has/has not (strike one) approved a plan for levying certain
13.24 common expense assessments against fewer than all the units according to
13.23 d.
13.25 Minnesota Statutes, section 515B.3-115, subsection (e). If a plan is approved, a
13.26 description of the plan is attached to this certificate.
13.27 3. In addition to the amounts due under paragraph 2, the following additional fees or
13.28charges other than assessments are payable by unit owners (include late payment charges,
13.29user fees, etc.):
13.30................................................................................................................................................
13.31................................................................................................................................................
13.32................................................................................................................................................
13Sec. 4.
25-04832 as introduced03/13/25 REVISOR MS/ES 14.1 4. There are no extraordinary expenditures approved by the association, and not yet
14.2assessed, for the current and two succeeding fiscal years, except as follows:.......................
14.3................................................................................................................................................
14.4................................................................................................................................................
14.5 5. The association is obligated to replace the following components of the common
14.6interest community:...............................................................................................................
14.7................................................................................................................................................
14.8................................................................................................................................................
14.9 The association has the following amounts in its reserves for replacement of those
14.10components:
14.11................................................................................................................................................
14.12................................................................................................................................................
14.13The replacement of the following components is funded by assessments levied only against
14.14the unit or units served by the component, pursuant to Minnesota Statutes, section
14.15515B.3-115(e)(1) or (2)..........................................................................................................
14.16................................................................................................................................................
14.17................................................................................................................................................
14.18 6. The following documents are furnished with this certificate according to statute:
The most recent regularly prepared balance sheet and income and expense
14.20 statement of the association.
14.19 a.
The current budget of the association.14.21 b.
14.22 7. There are no unsatisfied judgments against the association, except as follows (identify
14.23creditor and amount):.............................................................................................................
14.24................................................................................................................................................
14.25................................................................................................................................................
14.26 8. There are no pending lawsuits to which the association is a party, except as follows
14.27(identify and summarize status):............................................................................................
14.28................................................................................................................................................
14.29................................................................................................................................................
14.30 9. Description of insurance coverages:
14Sec. 4.
25-04832 as introduced03/13/25 REVISOR MS/ES 15.1 a. The association provides the following insurance coverage for the benefit of unit
15.2owners: (Reference may be made to applicable sections of the declaration or bylaws;
15.3however, any additional coverages should be described in this space).................................
15.4................................................................................................................................................
15.5................................................................................................................................................
15.6................................................................................................................................................
15.7 b. The following described fixtures, decorating items, or construction items within the
15.8unit referred to in Minnesota Statutes, section 515B.3-113, subsection (b), are insured by
15.9the association (check as applicable):
15.10..... Ceiling or wall finishing materials
15.11..... Finished flooring
15.12..... Cabinetry
15.13..... Finished millwork
15.14..... Electrical, heating, ventilating, and air conditioning equipment, or plumbing fixtures
15.15serving a single unit
15.16..... Built-in appliances
15.17..... Improvements and betterments as originally constructed
15.18..... Additional improvements and betterments installed by unit owners
15.19 10. The board of directors of the association has not notified the unit owner (i) that any
15.20alterations or improvements to the unit or to the limited common elements assigned to it
15.21violate any provision of the declaration; or (ii) that the unit is in violation of any governmental
15.22statute, ordinance, code, or regulation, except as follows:....................................................
15.23................................................................................................................................................
15.24 11. The remaining term of any leasehold estate affecting the common interest community
15.25and the premises governing any extension or renewal of it are as follows:...........................
15.26................................................................................................................................................
15.27................................................................................................................................................
15.28 12. This Resale Disclosure Certificate is given in connection with the resale of a unit
15.29by a unit owner who is not a declarant and who, therefore, is not liable for express warranties
15.30under Minnesota Statutes, section 515B.4-112, or implied warranties under Minnesota
15Sec. 4.
25-04832 as introduced03/13/25 REVISOR MS/ES 16.1Statutes, section 515B.4-113. The conveyance of this unit may, however, result in a transfer
16.2of preexisting warranties made by a declarant under the referenced statutes, subject to the
16.3terms of Minnesota Statutes, sections 515B.4-114 and 515B.4-115.
16.4 13. In addition to the above, the following matters affecting the occupancy or use of the
16.5unit, or the unit owner's obligations with respect to the unit, are deemed material:..............
16.6................................................................................................................................................
16.7 I hereby certify that the foregoing information and statements are true and correct as
16.8of............................................................................................................................................
16.9..................................
16.10 (Date)
16.11 By: .................................................................
16.12 Title: ..............................................................
16.13 (Association representative)
16.14 Address: ........................................................
16.15 Phone Number: .............................................
16.16 RECEIPT
16.17In addition to the foregoing information furnished by the association, the unit owner is
16.18obligated to furnish to the purchaser before execution of any purchase agreement for a unit
16.19or otherwise before conveyance, copies of the following documents relating to the association
16.20or to the master association (as applicable): the declaration (other than any common interest
16.21community plat), articles of incorporation, bylaws, rules and regulations (if any), and any
16.22amendments to these documents. Receipt of the foregoing documents, and the resale
16.23disclosure certificate, is acknowledged by the undersigned buyer(s).
.........................................................16.24 Dated: ..................................
16.25 (Buyer)
16.26 .........................................................
16.27 (Buyer)
16.28 (c) If the common interest community is subject to a master declaration and governed
16.29by a master association to which has been delegated any of the association's powers under
16.30section 515B.3-102(a)(2), then the financial information required to be disclosed under
16.31subsection (b) may be disclosed on a consolidated basis.
16.32 (d) The association, within ten days after a request by a unit owner, or the unit owner's
16.33authorized representative, shall furnish the certificate required in subsection (a). The
16.34association may charge a reasonable fee for furnishing the certificate and any association
16Sec. 4.
25-04832 as introduced03/13/25 REVISOR MS/ES 17.1documents related thereto. A unit owner providing a certificate pursuant to subsection (a)
17.2is not liable to the purchaser for any erroneous information provided by the association and
17.3included in the certificate. A unit owner who has acquired title to a unit pursuant to section
17.4515B.3-104 including, but not limited to, a unit owner who has acquired title through
17.5foreclosure or a deed in lieu of foreclosure, must indicate to the association in connection
17.6with a request for a resale disclosure certificate whether the requesting unit owner is or is
17.7not a declarant. The unit owner, not the association, is liable for any damage, loss, or other
17.8consequence arising out of the incorrect representation of its declarant status.
17.9 (e) A purchaser is not liable for any unpaid common expense assessments, including
17.10special assessments, if any, not set forth in the certificate required in subsection (a). A
17.11purchaser is not liable for the amount by which the annual or special assessments exceed
17.12the amount of annual or special assessments stated in the certificate for assessments payable
17.13in the year in which the certificate was given, except to the extent of any increases
17.14subsequently approved in accordance with the declaration or bylaws. A unit owner is not
17.15liable to a purchaser for the failure of the association to provide the certificate, or a delay
17.16by the association in providing the certificate in a timely manner.
17.17 EFFECTIVE DATE.This section is effective August 1, 2026.
17.18Sec. 5. APPROPRIATION; MINNESOTA HOMEOWNERSHIP CENTER.
17.19 (a) $200,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
17.20of the Housing Finance Agency for a grant to the Minnesota Homeownership Center to
17.21create a guide providing a plain-language explanation of common provisions in governing
17.22documents for common interest communities and homeowners associations and a guide to
17.23the laws governing common interest communities and homeowners associations, specifically
17.24Minnesota Statutes, chapter 515B, the Minnesota Common Interest Ownership Act. The
17.25guide must provide a plain-language explanation of:
17.26 (1) common elements in governing documents;
17.27 (2) the rights and responsibilities of the board of directors that are often found in
17.28governing documents and Minnesota Statutes, chapter 515B; and
17.29 (3) the rights and responsibilities of homeowners contained in Minnesota Statutes, chapter
17.30515B.
17.31 (b) The guide must be available for no cost to the public and posted online by the
17.32Minnesota Homeownership Center by July 30, 2026.
17Sec. 5.
25-04832 as introduced03/13/25 REVISOR MS/ES