(a) No special declarant rights (section 515A.1-103(18)) created or reserved under sections 515A.1-101 to 515A.4-117 may be transferred except by an instrument evidencing the transfer recorded in every county where any portion of the condominium is located. The instrument shall be recordable and is not effective unless executed by the transferor and transferee. If additional real estate is transferred by the declarant, the transferee shall be deemed to receive all special declarant rights with respect thereto and shall be subject to any obligations imposed by the declaration respecting the additional real estate so transferred.
(b) Upon transfer of any special declarant right, the liability of a transferor declarant is as follows:
(1) a transferor is not relieved of any obligation or liability which arose before the transfer, and remains liable for warranty obligations imposed by sections 515A.1-101 to 515A.4-117. Lack of privity does not deprive any unit owner of standing to bring an action to enforce any obligation of the transferor;
(2) if a transferor retains any special declarant right, or if a successor to any special declarant right is an affiliate of a declarant (section 515A.1-103(2)), the transferor is subject to liability for all obligations and liabilities imposed on a declarant by sections 515A.1-101 to 515A.4-117 or by the declaration arising after the transfer and is jointly and severally liable with the successor for the liabilities and obligations of the successor which relate to the condominium; and
(3) a transferor who retains no special declarant right has no liability for any act or omission or any breach of a contractual or warranty obligation arising from the exercise of a special declarant right by a successor declarant who is not an affiliate of the transferor.
(c) In case of foreclosure of a mortgage or cancellation of a contract for deed or sale under the bankruptcy act or receivership proceeding or the foreclosure of any other lien against any unit owned by a declarant in the condominium, a person first acquiring title to all the units being canceled, foreclosed or sold, succeeds to all then existing special declarant rights except the special declarant rights with respect to additional real estate, unless the mortgage or other instrument or proceeding also covers additional real estate.
(d) The liabilities and obligations of persons who succeed to special declarant rights are as follows:
(1) A successor to any special declarant right who is an affiliate of a declarant is subject to all the obligations and liabilities imposed on any declarant by sections 515A.1-101 to 515A.4-117 or by the declaration.
(2) A successor to any special declarant right, other than a successor described in paragraph (3) or (4), who is not an affiliate of a declarant, is subject to all obligations and liabilities imposed on a declarant by sections 515A.1-101 to 515A.4-117 or the declaration, except that the successor is not subject to liability for misrepresentations or warranty obligations on improvements made by any previous declarant, or made before the condominium was created, or for a breach of fiduciary obligation by any previous declarant.
(3) A successor to only a right reserved in the declaration to maintain models, sales offices, and signs (section 515A.2-117), if the successor is not an affiliate of a declarant, may not exercise any other special declarant right, and is not subject to any liability or obligation as a declarant, except the obligation to provide a disclosure statement and any liability arising as a result thereof.
(4) A successor to all special declarant rights, who is not an affiliate of a declarant and who succeeded to those rights pursuant to a deed in lieu of foreclosure or by reason of subsection (c), may declare an intention in a recorded instrument to hold those rights solely for transfer to another person. Thereafter, until transferring all special declarant rights to any person acquiring title to any unit owned by the successor, or until recording an instrument permitting exercise of all those rights, that successor may not exercise any of those rights other than the right to control the board of directors in accordance with the provisions of section 515A.3-103 for the duration of any period of declarant control, and any attempted exercise of those rights is void. So long as any successor declarant may not exercise special declarant rights under this subsection, the successor declarant is not subject to any liability or obligation as a declarant other than liability for acts and omissions under section 515A.3-103.
(e) Nothing in this section subjects any successor to a special declarant right to any claims against or other obligations of a transferor declarant, other than claims and obligations arising under sections 515A.1-101 to 515A.4-117 or the declaration.
1980 c 582 art 3 s 515.3-104; 1986 c 444
Structure Minnesota Statutes
Chapters 500 - 515B — Property And Property Interests
Chapter 515A — Uniform Condominium Act
Section 515A.1-101 — Short Title.
Section 515A.1-102 — Applicability.
Section 515A.1-103 — Definitions.
Section 515A.1-104 — Variation By Agreement.
Section 515A.1-105 — Property Taxation.
Section 515A.1-106 — Applicability Of Local Ordinances, Regulations, And Building Codes.
Section 515A.1-107 — Eminent Domain.
Section 515A.1-108 — Supplemental General Principles Of Law Applicable.
Section 515A.1-109 — Construction Against Implicit Repeal.
Section 515A.1-110 — Uniformity Of Application And Construction.
Section 515A.1-111 — Severability.
Section 515A.1-112 — Unconscionable Agreement Or Term Of Contract.
Section 515A.1-113 — Obligation Of Good Faith.
Section 515A.1-114 — Remedies To Be Liberally Administered.
Section 515A.1-116 — Effective Date.
Section 515A.2-101 — Creation Of Condominium.
Section 515A.2-102 — Unit Boundaries.
Section 515A.2-103 — Construction And Validity Of Declaration And Bylaws.
Section 515A.2-104 — Description Of Units.
Section 515A.2-105 — Contents Of Declaration; All Condominiums.
Section 515A.2-106 — Contents Of Declaration; Flexible Condominiums.
Section 515A.2-107 — Leasehold Condominiums.
Section 515A.2-108 — Allocation Of Common Element Interests, Votes, And Common Expense Liabilities.
Section 515A.2-109 — Common Elements And Limited Common Elements.
Section 515A.2-110 — Condominium Plats.
Section 515A.2-111 — Expansion Of Flexible Condominiums.
Section 515A.2-113 — Alterations Of Units.
Section 515A.2-114 — Relocation Of Boundaries Between Adjoining Units.
Section 515A.2-115 — Subdivision Or Conversion Of Units.
Section 515A.2-116 — Minor Variation In Boundaries.
Section 515A.2-117 — Use For Sales Purposes.
Section 515A.2-118 — Easement To Facilitate Completion, Conversion, And Expansion.
Section 515A.2-119 — Amendment Of Declaration.
Section 515A.2-120 — Termination Of Condominium.
Section 515A.2-121 — Rights Of Holders Of An Interest As Security For An Obligation.
Section 515A.3-101 — Organization Of Unit Owners' Association.
Section 515A.3-102 — Powers Of Unit Owners' Association.
Section 515A.3-103 — Board Of Directors, Members And Officers.
Section 515A.3-104 — Transfer Of Special Declarant Rights.
Section 515A.3-105 — Termination Of Contracts And Leases Of Declarant.
Section 515A.3-107 — Upkeep Of The Condominium.
Section 515A.3-111 — Tort And Contract Liability.
Section 515A.3-112 — Insurance.
Section 515A.3-113 — Surplus Funds.
Section 515A.3-114 — Assessments For Common Expenses.
Section 515A.3-115 — Lien For Assessments.
Section 515A.3-116 — Association Records.
Section 515A.3-117 — Association As Trustee.
Section 515A.4-101 — Applicability; Waiver.
Section 515A.4-102 — Disclosure Statement; General Provisions.
Section 515A.4-104 — Same; Conversion Condominiums.
Section 515A.4-106 — Purchaser's Right To Cancel.
Section 515A.4-107 — Resales Of Units.
Section 515A.4-1075 — Purchaser's Right To Cancel.
Section 515A.4-108 — Escrow Of Deposits.
Section 515A.4-109 — Release Of Interests As Security For An Obligation.
Section 515A.4-110 — Conversion Condominiums.
Section 515A.4-111 — Express Warranties.
Section 515A.4-112 — Implied Warranties.
Section 515A.4-113 — Exclusion Or Modification Of Implied Warranties.
Section 515A.4-114 — Statute Of Limitations For Warranties.
Section 515A.4-115 — Effect Of Violations On Rights Of Action; Attorney's Fees.
Section 515A.4-116 — Labeling Of Promotional Material.
Section 515A.4-117 — Declarant's Obligation To Complete And Restore.