Chapter 515B — Common Interest Ownership Act

515B.1-100 This is a placeholder section for the Minnesota Common Interest Ownership Act chapter index. 515B.1-101 Short Title This law is officially called the 'Minnesota Common Interest Ownership Act.' It governs condominiums, townhomes, … 515B.1-102 Applicability Determines which common interest communities are governed by the Minnesota Common Interest Ownership Act (MCIOA). The … 515B.1-103 Definitions This section defines all the key terms used in the common interest ownership law, including 'common interest community,' … 515B.1-104 Variation by Agreement The rights in this law cannot be waived by agreement, and a developer cannot use powers of attorney or other tricks to … 515B.1-105 Separate Titles and Taxation Each unit in a condo or planned community is taxed separately. In a cooperative, the association pays property taxes on … 515B.1-106 Applicability of Local Requirements Local governments cannot ban or unfairly restrict the common interest community form of ownership. They must treat … 515B.1-107 Eminent Domain If the government takes a unit through eminent domain, the owner and secured parties must be fairly compensated. The … 515B.1-108 This Chapter Prevails; Supplemental Law General legal principles like contract law, property law, fraud, and fairness apply in addition to this chapter. … 515B.1-109 Construction Against Implicit Repeal This law should not be considered repealed by later legislation unless the conflict is truly irreconcilable. 515B.1-110 If one part of this law is found invalid by a court, the rest of the law still applies. One bad provision does not … 515B.1-1105 Vacation of Abutting Publicly Dedicated Property This section ensures the law is interpreted consistently across all states that have adopted similar common interest … 515B.1-111 A court can refuse to enforce a contract or term involving a developer if it was grossly unfair when it was made. The … 515B.1-112 Unconscionable Agreement or Term of Contract Everyone with duties under this law must perform them in good faith and deal honestly with others. 515B.1-113 Obligation of Good Faith Courts should generously provide remedies to people harmed by violations of this law, putting them in as good a position … 515B.1-114 Remedies to Be Liberally Administered All notices required by this law must be in writing and are effective when hand-delivered or when properly mailed. … 515B.1-115 Notice This law does not affect valid liens or encumbrances that existed before the common interest community was created, … 515B.1-116 Recording Nothing in this law requires a common interest community to have an official plat approved by local government if a plat … 515B.2-101 Creation of Common Interest Communities Specifies how condominiums, cooperatives, and planned communities are legally created in Minnesota. All types require … 515B.2-102 Unit Boundaries This section defines the boundaries of each unit in a common interest community, including rules for walls, floors, … 515B.2-103 Construction and Validity of Declaration and Bylaws All provisions of the declaration and bylaws are severable. If one part is found invalid, the rest remains in effect. 515B.2-104 Description of Units A unit can be legally described by its community name, county, and unit number. A full land description is not needed … 515B.2-105 Declaration Contents; All Common Interest Communities This section lists everything the declaration must contain, including the community name, location, unit descriptions, … 515B.2-106 Declaration of Flexible Common Interest Communities If the community can be expanded by adding more land (a flexible common interest community), the declaration must … 515B.2-107 Declaration of Leasehold Common Interest Communities If a community is built on leased land, the declaration must include special provisions about the lease term, what … 515B.2-108 Allocation of Interests The declaration must assign each unit its percentage of common element ownership, voting power, and share of common … 515B.2-109 Common Elements and Limited Common Elements Common elements are shared by all owners, while limited common elements are reserved for specific units. The declaration … 515B.2-110 Common Interest Community Plat (cic Plat); Cic Created Before August 1, 2010 This section sets out requirements for plats in planned communities and cooperatives, which are less detailed than condo … 515B.2-1101 Common Interest Community Plat (cic Plat); Cic Created on or After August 1, 2010 This section provides specific requirements for common interest community plats for condominiums, including survey … 515B.2-111 Expansion of Flexible Common Interest Community A flexible community can be expanded by adding more property. The developer must record an amendment to the declaration, … 515B.2-112 Subdivision, Combination, or Conversion of Units A developer may withdraw property from a flexible community only if the declaration reserved that right and no units … 515B.2-113 Alteration of Units A unit owner may make changes inside their unit as long as they follow the declaration and do not damage common elements … 515B.2-114 Relocation of Boundaries Between Adjoining Units Owners of adjoining units can agree to relocate the boundary between their units by filing an amendment to the … 515B.2-115 Minor Variations in Boundaries If the declaration allows it, a unit can be split into multiple units. A developer may also convert units into common … 515B.2-116 Use for Sales Purposes The actual physical boundaries of a unit are treated as the legal boundaries, even if the building has settled or … 515B.2-117 Declarant's Easement Rights A developer may maintain sales offices, management offices, model units, and advertising signs in the community if the … 515B.2-118 Amendment of Declaration A developer has an easement through common areas as reasonably needed to finish construction, complete improvements, or … 515B.2-119 Termination of Common Interest Community The declaration can be amended by a vote of at least 67 percent of unit owners, unless the declaration specifies a … 515B.2-120 Rights of Secured Parties A common interest community can be terminated by agreement of at least 80 percent of unit owners. After termination, the … 515B.2-121 Master Associations Mortgage holders retain their rights under this chapter. The declaration can require mortgage holder approval for … 515B.2-122 Merger or Consolidation of Common Interest Communities A master association can be created to manage multiple common interest communities under a single governing body, with … 515B.2-123 Change of Form of Common Interest Community A merger of two or more common interest communities into one can be approved by a vote of at least 67 percent of each … 515B.2-124 Severance of Common Interest Community Common interest communities are subject to all applicable state and local laws including building codes, zoning, and … 515B.2-125 Addition of Common Elements This section addresses the rights and obligations when a common interest community contains both residential and … 515B.3-101 Organization of Unit Owners' Association An owners association must be organized when the community is created. All unit owners are automatically members and the … 515B.3-102 Powers of Unit Owners' Association Lists the broad powers of a homeowners association (HOA) or unit owners association, including adopting rules, levying … 515B.3-103 Board of Directors, Officers and Declarant Control The developer may control the association board for a limited period. Control must end within 60 days after 75 percent … 515B.3-104 Transfer of Special Declarant Rights; Special Declarant Rights Transferred Before August 1, 2010 A developer can transfer special development rights to another person only by recording a proper document. The new … 515B.3-1041 Special Declarant Rights; Transfer, Liability of Transferor and Transferee, and Termination; Special Declarant Rights Transferred on or After August 1, 2010 This section establishes requirements for transition from developer control to owner control, including audits, document … 515B.3-105 Termination of Contracts, Leases; Cic Created Before August 1, 2010 The association must adopt bylaws that provide for governance procedures, including elections, meetings, voting, and … 515B.3-1051 Termination of Contracts, Leases, Licenses; Cic Created on or After August 1, 2010 After the developer's control period ends, the association can terminate certain contracts entered during developer … 515B.3-106 Bylaws; Annual Report The association may adopt reasonable rules governing the use of units and common elements, as long as the rules are … 515B.3-107 Upkeep of Common Interest Community Divides maintenance responsibility in a common interest community: the association maintains the common elements, and … 515B.3-108 Meetings Requires homeowners associations to hold at least one meeting per year. The annual meeting must include election of … 515B.3-109 Quorums Board members are protected from personal liability for decisions made in good faith and with reasonable care, as long … 515B.3-110 Voting; Proxies The association must hold regular meetings open to all owners. Owners have a right to attend, speak at, and receive … 515B.3-111 Tort and Contract Liability If a legal problem occurred during developer control, the developer must indemnify the association. The statute of … 515B.3-112 Conveyance of, or Creation of Security Interests in, Common Elements The association must maintain property insurance on common elements and liability insurance. Individual owners should … 515B.3-113 Insurance Surplus funds remaining after the association pays expenses and funds reserves are credited to unit owners to reduce … 515B.3-114 Reserves; Surplus Funds The association must adopt an annual budget and levy assessments at least yearly to cover common expenses. The developer … 515B.3-1141 Replacement Reserves The association must maintain adequate reserves for major repairs and replacements of common elements, based on a … 515B.3-115 Assessments for Common Expenses; Cic Created Before August 1, 2010 Governs how assessments for common expenses are levied in common interest communities created before August 1, 2010. The … 515B.3-1151 Assessments for Common Expenses; Cic Created on or After August 1, 2010 The association must provide a detailed payoff statement within ten business days when requested. The statement must … 515B.3-116 Lien for Assessments Creates an automatic lien on a unit for any unpaid association assessments. The lien arises when the assessment becomes … 515B.3-117 Other Liens When the association acts as a trustee, third parties can rely on the association's authority without investigating … 515B.3-118 Association Records This section addresses how common interest communities interact with landlord-tenant law, including the rights of … 515B.3-119 Association as Trustee This section addresses the exercise of development rights and the obligations of successor developers who acquire … 515B.3-120 Declarant Duties; Turnover of Records This section establishes rules for alternative dispute resolution, encouraging mediation and arbitration as alternatives … 515B.3-121 Accounting Controls This section addresses the rights and responsibilities of the association regarding telecommunications, technology … 515B.4-101 Applicability; Delivery of Disclosure Statement The consumer protection rules in this part of the law apply to all residential common interest community units. They can … 515B.4-102 Disclosure Statement; General Provisions; Cic Created Before August 1, 2010 A developer must provide buyers with a detailed disclosure statement covering the community's finances, construction, … 515B.4-1021 Disclosure Statement; General Provisions; Cic Created on or After August 1, 2010 This section provides specific disclosure requirements for conversion common interest communities, where an existing … 515B.4-103 Common Interest Communities Subject to Rights to Add Additional Real Estate The disclosure statement must be updated if there are material changes before the buyer closes on the purchase. 515B.4-104 Time Shares This section provides specific disclosure requirements for communities where the developer has the right to add more … 515B.4-105 Common Interest Community With Building Once Occupied This section requires additional disclosures for communities with time-share arrangements, where multiple people share … 515B.4-106 Purchaser's Right to Cancel Gives buyers of new units in a common interest community the right to cancel the purchase agreement within ten days of … 515B.4-107 Resale of Units When an owner resells a unit, they must provide the buyer with copies of the declaration, bylaws, rules, and a resale … 515B.4-108 Purchaser's Right to Cancel Resale Gives buyers of resale units in a common interest community the right to cancel the purchase agreement within ten days … 515B.4-109 Escrow Deposits Before selling a unit, the seller must provide releases from any blanket mortgages or liens covering more than that one … 515B.4-110 Obligation to Release Liens When a rental building is converted to a common interest community, existing tenants must receive at least 120 days … 515B.4-111 Conversion Property A developer creates express warranties by making specific promises, models, or descriptions that a buyer reasonably … 515B.4-112 Express Warranties A developer automatically warrants that a unit will be in good condition at the time of sale, fit for its intended use, … 515B.4-113 Implied Warranties Implied warranties can be limited or excluded for commercial units. For residential units, the basic warranty on common … 515B.4-114 Exclusion or Change of Implied Warranties A lawsuit for breach of a developer's warranty must be filed within the applicable statute of limitations period. The … 515B.4-115 Statute of Limitations for Warranties; Cic Created Before August 1, 2010 Anyone harmed by a violation of this chapter can sue for appropriate relief. Courts may award punitive damages for … 515B.4-1151 Statute of Limitations for Warranties; Cic Created on or After August 1, 2010, and Before August 1, 2011 This section provides for statutory home warranties covering construction defects in common interest community units and … 515B.4-1152 Statute of Limitations for Warranties; Cic Created on or After August 1, 2011 This section establishes notice and opportunity to repair requirements before an association or owner can file a … 515B.4-116 Rights of Action; Attorney's Fees Marketing materials must clearly label any improvement as 'NEED NOT BE BUILT' if the community plat labels it that way. 515B.4-117 Labeling of Promotional Material The developer must complete all improvements labeled 'MUST BE BUILT' and must repair any damage caused during … 515B.4-118 Declarant's Obligation to Complete and Restore References to 'this act' or 'this chapter' throughout the law mean sections 515B.1-101 through 515B.4-118.