Purpose

This act updates Minnesota law to change how disclosure documents are provided in common interest communities. It aims to ensure that necessary disclosure materials are available to buyers, clarifies who must deliver them, and requires certain information about master associations to be shared in a timely, cost-free way.

Main Provisions

• Applicability and duties

  • Applies to all units governed by the common interest statutes, with exceptions noted in the bill.
  • A declarant who offers a unit must provide a current disclosure statement (and any material amendments) to the purchaser, and the declarant is liable for any false or misleading statements or omissions.

• Cost and delivery of documents

  • A key change: the board must provide to the declarant any document the declarant is required to deliver to a purchaser under this chapter, at no cost to the declarant.

• Exemptions from delivery

  • Some transfers do not require the disclosure statement or resale disclosure certificate, such as gratuitous transfers, transfers by court order, transfers to government entities, foreclosures, unexercised options to purchase, certain related-party transfers, transfers by inheritance, special declarant rights, and changes in form of ownership of the common interest community.

• Purchase agreement notices

  • Purchase agreements must include a notice informing the purchaser that they are entitled to receive a disclosure statement or resale disclosure certificate, and that the statement includes important information and cancellation rights.

• Master associations, master developers, and related information

  • For sales of lots or parcels that may be subject to a master declaration and intended for residential use, the buyer must be informed that the master association may affect the real estate.
  • The master developer must, within ten days after a request, provide to the buyer (or their authorized representative) the information required under the statute for the master association (including name, address, and telephone number) and must provide this information within ten days of a request.
  • The buyer or buyer’s representative has access to the master association information to help understand the master plan and governance.

• Remedies and limitations

  • A buyer’s claim for failure to comply with these disclosure requirements is limited to legal remedies (not equitable remedies) and must be brought within the time limits specified in the statute.

• Additional procedural note

  • The board must furnish to the declarant any document required to be delivered to a purchaser at no cost, reinforcing cost-free access to the necessary disclosure materials.

Significant Changes to Existing Law

• Shift in delivery responsibility and cost

  • The bill imposes a cost-free delivery obligation on boards to provide documents to declarants, who then deliver the disclosures to purchasers. This changes the financing and logistics of how disclosure documents are obtained and shared.

• Expanded and clarified disclosures

  • Strengthens requirements around the disclosure statement (and amendments) and makes sure they align with what purchasers receive at closing.

• Master association transparency

  • Introduces or tightens requirements for providing master association information through master developers, including defined timeframes (ten days to respond) and specific contact details.

• Exemption scope clarified

  • Restates and clarifies which transfers do not require a disclosure statement or resale disclosure certificate.

• Enforcement and remedies

  • Clarifies that buyers’ remedies are legal rather than equitable, and places a filing deadline on claims.

Relevant terms - common interest community - declaration/declarant - purchaser - disclosure statement - resale disclosure certificate - master association - master developer - master declaration - 515B.4101 (applicability and delivery of disclosure statement) - 515B.4102 (contents of disclosure statement) - 515B.4102a20 (master association information) - 515B.4115a.g (timing/remedies) - transfer exemptions (court order, foreclosure, inheritance, etc.) - unit - platted lot - board - fiduciary obligations - no-cost delivery