USA Minnesota

USA Statutes : minnesota
Title : SECURITIES, COMMERCIAL REGULATIONS
Chapter : Subdivided lands
83.01 Repealed, 1973 c 413 s 24
83.02 Repealed, 1973 c 413 s 24
83.03 Repealed, 1973 c 413 s 24
83.04 Repealed, 1973 c 413 s 24
83.05 Repealed, 1973 c 413 s 24
83.06 Repealed, 1973 c 413 s 24
83.07 Repealed, 1973 c 413 s 24
83.08 Repealed, 1973 c 413 s 24
83.09 Repealed, 1973 c 413 s 24
83.10 Repealed, 1973 c 413 s 24
83.11 Repealed, 1973 c 413 s 24
83.12 Repealed, 1973 c 413 s 24
83.13 Repealed, 1973 c 413 s 24
83.14 Repealed, 1973 c 413 s 24
83.15 Repealed, 1973 c 413 s 24
83.16 Repealed, 1973 c 413 s 24
83.17 Repealed, 1973 c 413 s 24
83.18 Repealed, 1973 c 413 s 24
83.19 Repealed, 1973 c 413 s 24
83.20 Definitions. Subdivision 1. Advertisement.
"Advertisement" means any written or printed communication or any
communication by telephone or transmitted on radio, television,
electronic means or similar communications media published in
connection with the offer or sale of subdivided lands or any
communication made to induce prospective purchasers to visit or
attend an offer or sales presentation. Subd. 2. Agent.
"Agent" means any person who represents, or acts for or on behalf of,
a subdivider in disposing of subdivided lands or lots in a
subdivision, and includes a real estate salesperson or broker, but
does not include an attorney at law whose representation of another
person consists solely of rendering legal services. Subd. 3.Blanket encumbrance. "Blanket encumbrance" means a trust deed
or mortgage or mechanics lien or any other lien or financial
encumbrance, securing or evidencing money debt and affecting lands to
be subdivided or affecting more than one lot, parcel, unit or
interest of subdivided land; or an agreement affecting more than one
lot, parcel unit or interest by which the subdivider holds the
subdivision under an option, contract for deed, contract to purchase
or trust agreement, except a lien or other encumbrance arising as a
result of the imposition of a tax assessment by a public authority so
long as no portion thereof is past due. Subd. 4.
Commissioner. "Commissioner" means the commissioner of commerce
of the state of Minnesota or the commissioner's authorized delegate.Subd. 5. Sale; sell. "Sale" or "sell" means every
contract or agreement to convey an interest, including a leasehold
interest, in subdivided land for value. Subd. 6.
Notice. "Notice" means a communication from the commissioner.
Notice to subdividers shall be deemed complete when personally served
upon or mailed to the subdivider's address currently on file with the
commissioner. Subd. 7. Offer. "Offer" includes every
inducement, solicitation or attempt to encourage a person to acquire
a lot, unit, parcel or interest in land. Subd. 8.
Option. "Option" means, and is limited to, an offer to sell or to
purchase respecting which a consideration of not more than 15 percent
of the total purchase price is exchanged to guarantee that the offer
will not be withdrawn or revoked for an agreed period of time.
Subd. 9. Person. "Person" means an individual, corporation,
government or governmental division or agency, business trust,
estate, trust, partnership, unincorporated association, two or more
of any of the foregoing having a joint or common interest or any
other legal or commercial entity. Subd. 10. Purchaser.
"Purchaser" means a person who acquires or attempts to acquire or
succeeds to an interest in land. Subd. 11. Subdivision;
subdivided land. "Subdivision" or "subdivided land" means any
real estate, wherever located, improved or unimproved, which is
divided or proposed to be divided for the purpose of sale or lease,
including sales or leases of any timeshare interest, unit in a common
interest community, or similar interest in real estate. Subd.
12. Subdivider. "Subdivider" means a person whose interest
in subdivided land is offered or advertised, by the person or the
person's agent, for disposition. Subd. 13. Timeshare
interest. "Timeshare interest" means a right to occupy a unit or
any of several units during intermittent time periods over a period
of at least three years, including renewal options, whether or not
coupled with a freehold estate or an estate for years. Subd. 14.Improved lots. "Improved lots" means lots which have or will
have within a two-year period from the date of purchase, a permanent
residential structure thereon, and are not devoted to or used as a
time share interest, unit in a common interest community, or similar
interest in real estate. Subd. 15. Advance payment.
"Advance payment" means any money paid in advance regardless of its
descriptive nomenclature, including but not limited to, management
fee, listing, security, or advance fee or payment in connection with
the resale of a timeshare interest.
83.21 Commissioner of commerce to administer. Sections 83.20
to 83.42,
83.43
and 83.44
shall be administered by the commissioner of commerce.
83.22 Citation. Sections 83.20
to 83.42
may be cited as the Minnesota Subdivided Land Sales Practices Act.

83.23 Registration requirement. Subdivision 1.
Registration. It is unlawful for any person to offer or sell an
interest in subdivided lands in this state unless the interest is
registered under this section or the subdivided land or the
transaction is exempt under section 83.26.Subd. 2. Notification. Unless the method of offer or
sale is adopted for the purpose of evasion of sections 83.20
to 83.42,
83.43
and 83.44,
subdivided lands may be registered by notification provided that all
of the following requirements have been met: (a) the subdivision
consists of not more than 100 separate lots, units, parcels, or
interests; (b) at least 20 days prior to any offer pursuant to
this subdivision, the subdivider must supply the commissioner, on
forms which the commissioner may by rule prescribe, at least the
following information: (1) the name and address of the subdivider
and the form and date of its organization if other than an
individual; (2) the location and legal description of the
subdivision and the total number of lots, parcels, units, or
interests; (3) either a title opinion prepared and signed by an
attorney licensed to practice law in the state wherein the subdivided
land is situated; or a certificate of title insurance or its
equivalent acceptable to the commissioner; (4) a copy of each
instrument which will be delivered to a purchaser to evidence the
purchaser's interest in the subdivided lands and a copy of each
contract or other agreement which a purchaser will be required to
agree to or sign, together with the range of selling prices, rates,
or rentals at which it is proposed to offer the lots, units, parcels,
or interests in the subdivision, a list of fees the purchaser may be
required to pay for amenities or membership in groups including, but
not limited to, homeowners' associations, country clubs, golf
courses, and other community organizations; and (5) a copy of a
signed and approved plat map or its equivalent; (c) a filing fee
of $150 has been paid; (d) the subdivider is in compliance with
the service of process provisions of section 83.39.The commissioner may by rule or order withdraw or further
condition registration by notification or increase or decrease the
number of lots, units, parcels, or interests in subdivided lands
permitted for registration by notification. If no stop order is in
effect, no proceeding is pending, and no order has been issued under
subdivision 4, a registration statement under this section
automatically becomes effective at 5:00 in the afternoon on the 20th
full business day after the filing of the registration statement or
the last amendment, or at such earlier time as the commissioner by
order determines. Subd. 3. Qualification. Subdivided
lands may be registered by qualification provided all of the
following requirements have been met: (a) an application for
registration has been filed with the commissioner in a format which
the commissioner may by rule prescribe; (b) the commissioner has
been furnished a proposed public offering statement complying with
section 83.24;(c) a filing fee of $400 plus an additional registration fee of
$1 for each lot, unit, parcel, or interest included in the offering
accompanies the application. The maximum combined filing and
registration fees shall in no event be more than $3,500; (d) the
subdivider is in compliance with service of process provisions of
section 83.39;(e) the commissioner has been furnished a financial statement of
the subdivider's most recent fiscal year, prepared by an independent
public accountant and certified by the subdivider; and, if the fiscal
year of the subdivider is more than 180 days prior to the date of
filing the application, a financial statement, which may be
unaudited, as of a date within 180 days of the date of application.Subdivisions in which all the improvements are complete and paid
for by the developer, and for which clear title can be given the
purchaser at the closing, are exempt from providing financial
statements prepared by an independent accountant. An application
for registration under this section becomes effective when the
commissioner so orders. Subd. 4. Consolidated
registration. If additional subdivided lands of the same
subdivider are subsequently to be offered for sale, the registration
thereof may be consolidated with any earlier registration offering
subdivided lands for sale if the additional subdivided lands are
contiguous to those previously registered. An application for
consolidation shall be accompanied by a consolidation fee of $50. If
the registration is pursuant to subdivision 3, an additional
registration fee of $1 shall be submitted for each lot, unit, parcel,
or interest included in the consolidation if the maximum fees have
not already been paid. Subd. 5. Withdrawal of
application. If no activity occurs with respect to an application
for a period of 120 days, the commissioner may by order declare the
application withdrawn. No part of the filing fee will be returned by
the commissioner if a registration application is withdrawn according
to this subdivision.
83.24 Public offering statement. Subdivision 1. Delivery.
A public offering statement shall be delivered to each person to whom
an offer is made before or concurrently with (a) the first written
offer other than offer by means of a public advertisement, or (b) any
payment pursuant to a sale, whichever occurs first. Each person to
whom an offer is made must be afforded a reasonable opportunity to
examine the public offering statement and must be permitted to retain
the statement. The subdivider or subdivider's agent shall obtain a
receipt, signed by the person, acknowledging receipt of a copy of the
public offering statement prior to the execution of any contract or
agreement to purchase any lot, unit, parcel, or interest in
subdivided lands. All receipts shall be kept in files which are in
the possession of the subdivider or subdivider's agent, subject to
inspection by the commissioner, for a period of three years from the
date of the receipt. Subd. 2. Full disclosure. A public
offering statement shall disclose fully and accurately the subdivided
lands being offered and shall make known to prospective purchasers
all unusual and material circumstances or features affecting the
subdivided lands. Subd. 3. Form. A public offering
statement shall be in a format prescribed by rule and shall include
the following: (a) the name, principal address, and telephone
number of the subdivider and of its officers and agents in this
state; (b) a general description of the subdivided lands stating
the total number of lots, parcels, units, or interests to be offered;(c) a statement which discloses whether the subdivider owns any
rights or options to acquire an interest in adjacent properties, and
if so, a description of the options and the locations and zoning
status of the adjacent properties; (d) a statement of the
assistance, if any, that the subdivider or subdivider's agent will
provide to the purchaser in the resale of the property and whether or
not the subdivider or the subdivider's agent will be in competition
in the event of resale; (e) the material terms of any
restrictions affecting the subdivided lands and each unit or lot,
including, but not limited to, any encumbrances, easements, liens,
and zoning status; a statement of the subdivider's efforts to remove
the restrictions; and a statement of all existing taxes and existing
or proposed special taxes or assessments which affect the subdivided
lands; (f) a statement of the use for which the property is to be
offered; (g) information concerning existing or proposed
improvements and amenities and the completion dates thereof; and
(h) additional information as may be required at the discretion of
the commissioner to assure full and fair disclosure to prospective
purchasers. Subd. 4. Permitted use. The public offering
statement shall not be used for any promotional purpose before
registration of the subdivided lands and after registration shall be
used only in its entirety. A person may not advertise or represent
that the commissioner has approved or recommended the subdivided
lands or sale thereof. A portion of the public offering statement
may not be underscored, italicized, or printed in larger or heavier
or different color type than the remainder of the statement unless
required or approved by the commissioner. Subd. 5. Other
law. Any public offering statement which complies with the
requirements of any federal law or the laws of any other state
requiring substantially the same disclosure of information as is
required by this section, may by rule or order of the commissioner be
deemed to be in full or partial compliance with this section.
83.25 License. Subdivision 1. Requirement. No person
shall offer or sell in this state any interest in subdivided lands
without having obtained: (1) a license under chapter 82; and
(2) MS 2002 (Expired, 2001 c 208 s 20) Subd. 2. Application
of other licensing provisions. Every license issued pursuant to
this section must be renewed, transferred, suspended, revoked or
denied in the same manner as provided in chapter 82 for licenses
issued pursuant to that chapter. Subd. 3.
Nonapplication. This section does not apply to persons offering
or disposing of interests in subdivided lands which are registered as
securities pursuant to chapter 80A.
83.26 Exemptions. Subdivision 1. Generally; lands. Unless
the method of offer or sale is adopted for the purpose of evasion of
sections 83.20
to 83.42,
83.43
and 83.44,
the following subdivided lands are exempted from sections 83.20
to 83.42:(a) any lands offered or sold by the United States, any state,
any political subdivision of a state, or any other corporate
instrumentality of one of the above; (b) leases of apartments,
stores, offices, or similar space; (c) leases of rooms or space
in hotels, motels, or similar space for a period of less than three
years, including renewal options; (d) cemetery lots or interests
therein; (e) mortgages or deeds of trust of real estate securing
evidences of indebtedness; (f) subdivided lands which are
registered as securities pursuant to the provisions of chapter 80A;
and (g) other subdivided lands not within the intent of this
chapter which the commissioner may by rule or order exempt.
Subd. 2. Generally; transactions. Unless the method of offer
or sale is adopted for the purpose of evasion of sections 83.20
to 83.42,
83.43
and 83.44,
the following transactions are exempt from sections 83.23,
83.24,
83.25,
83.28,
83.29,
and 83.30:(a) the offer or sale of an interest in subdivided land by an
owner, other than the subdivider, acting as principal in a single or
isolated transaction; (b) the offer or sale of all of the
subdivided lands within a subdivision in a single transaction to any
person; (c) the offer or sale of subdivided land pursuant to an
order of competent jurisdiction, other than a court of bankruptcy;(d) the offer or sale of subdivided land consisting of not more
than ten separate lots, units, parcels, or interests in the
aggregate, provided that no subdivider may make an offer or sale of
subdivided land pursuant to this exemption more than once during any
period of 12 consecutive months; (e) the offer or sale of
subdivided lands which have been registered under section 83.23,
subdivision 2, if there are no more than ten separate lots, units,
parcels, or interests remaining to be sold and no material change has
occurred in the information on file with the commissioner; (f)
the offer and sale of subdivided land located within the corporate
limits of a municipality as defined in section 462.352,
subdivision 2, which municipality has adopted subdivision regulations
as defined in section 462.352,
except those lands described in section 83.20,
subdivision 13; (g) the offer and sale of apartments or
condominium units as defined in chapters 515 and 515A, and units in
common interest communities as defined in chapter 515B; (h) the
offer and sale of subdivided lands used primarily for agricultural
purposes provided each parcel is at least ten acres in size; (i)
the offer or sale of improved lots if: (1) the subdivider has
filed with the commissioner, no later than ten business days prior to
the date of the first sale, a written notice of its intention to
offer or sell improved lots, which notice shall be accompanied by a
fee of $50, together with a copy of the public offering statement
accepted by the situs state and the standard purchase agreement which
documents are required to be supplied by the subdivider to the
purchaser; and (2) the subdivider deposits all downpayments in an
escrow account until all obligations of the subdivider to the
purchaser, which are pursuant to the terms of the purchase agreement
to be performed prior to the closing, have been performed. The
subdivider shall provide the purchaser with a purchase receipt for
the downpayment paid, a copy of the escrow agreement and the name,
address, and telephone number of the escrow agent. The escrow agent
shall be a bank located in Minnesota. All downpayments shall be
deposited in the escrow account within two business days after
receipt; and (j) the offer of sale of subdivided lands by a
subdivider that has been granted an exemption from registration by
the federal Department of Housing and Urban Development under the
multiple site subdivision exemption, if the subdivider provides a
written notice of the offer of sale to the commissioner before any
offers or sale commence. The written notice must include the
name of the subdivision, the county and state in which the
subdivision is located, and the number of lots in the subdivision,
and a notarized affidavit that all proposed improvements have been
completed and the costs of all the improvements have been fully paid,
or that the cost of any uncompleted road construction or survey
expenses are covered by a bond or escrow account payable to the
entities responsible for providing or completing the roads or
surveys. The escrow account must be with an independent escrow
agent. The subdivider must also provide to the commissioner a
copy of the federal Housing and Urban Development exemption order and
the most recent annual confirmation letter which indicates that the
order is still in effect. If the closing services are provided
by the subdivider or an affiliate of the subdivider, purchasers must
manually initial in the Housing and Urban Development Lot Information
Statement both the disclosure on all the liens, reservations, taxes,
assessments, easements, and restrictions applicable to the lot
purchased and the disclosure on the risks of not obtaining clear
title. The commissioner may, by rule or order, suspend, revoke,
or further condition the exemptions contained in clauses (f), (g),
(h), (i), and (j), or may require such further information as may be
necessary for the protection of purchasers. The commissioner may
by rule or order suspend, revoke, or further condition the exemptions
contained in clauses (f), (g), (h), and (i) or may require such
further information as may be necessary for the protection of
purchasers. Subd. 3. Exemption; burden. The burden of
proving an exemption or an exception from a definition is upon the
person claiming it.
83.27 Inquiry and examination. The commissioner may investigate
any subdivision required to be registered under sections 83.20
to 83.42,
83.43
and 83.44
for the purpose of verifying statements contained in the application
for registration or the public offering statement. For the purpose
of such investigation, the commissioner may: (a) use and rely
upon any relevant information or data concerning a subdivision
obtained by the commissioner from the Federal Housing Administration,
the United States Veterans Administration, or any state or federal
agency having supervisory duties over real estate subdivisions which
are comparable to those of the commissioner; (b) require the
subdivider to submit reports prepared by an independent licensed or
registered engineer concerning any hazard to which, in the opinion of
the commissioner, any subdivision offered for disposition is subject,
or concerning any other factor which affects the utility of lots,
units, parcels, or interests within the subdivision and may require
evidence of compliance to remove or minimize all hazards stated by
competent engineering reports; (c) conduct an on-site inspection
of each subdivision. The subdivider shall defray all actual and
necessary expenses incurred by the inspector in the course of the
inspection; (d) conduct an annual on-site reinspection of each
subdivision for each of the three years after registration and
thereafter make periodic on-site inspections. The developer shall
defray all actual and necessary expenses incurred by the inspector in
the course of such inspection; (e) require the subdivider to
deposit the expenses to be incurred in any inspection or
reinspection, in advance, based upon an estimate by the commissioner
of the expenses likely to be incurred. All such deposits shall be
paid into the state treasury and credited to the commissioner's
investigation fund, from which fund the commissioner shall have power
to make disbursements to pay such expenses. Any unexpended portion
shall be refunded. On field examinations made by the commissioner or
the commissioner's employee away from the office of the commissioner
a per diem of $10 for each such person may be charged in addition to
the actual expenses. Where additional technical, expert, or special
services are used, the actual cost of such services may be charged in
addition to actual expenses; (f) where an on-site inspection of
any subdivision has been made under sections 83.20
to 83.42,
83.43
and 83.44,
an inspection of additional subdivided lands for which a subsequent
application for registration is filed may be made.
83.28 Sales contract; rescission. Subdivision 1. Contract;
form restrictions. Every contract for sale relating to subdivided
land shall (1) state clearly the legal description of the lot, unit,
parcel, or interest disposed of; (2) contain the disclosure
substantially similar to that required by the federal truth in
lending act, and the rules promulgated thereunder; and (3) be in
recordable form. Subd. 2. Voidable. Any contract or
agreement for the sale of a lot, parcel, unit, or interest in a
subdivision not exempt under section 83.26,
is voidable at the discretion of the purchaser, for a period of three
years from the date of the contract or agreement, notwithstanding the
delivery of a deed to the purchaser, if the subdivision was not
registered under sections 83.20
to 83.42,
83.43
and 83.44
at the time of the sale, or if a current public offering statement
was not given to the purchaser in accordance with section 83.24,
unless subsequently thereto the subdivision is registered under this
chapter and in connection therewith, the purchaser has received a
written offer to repurchase the lot, parcel, unit, or interest for
cash payable on closing of the repurchase, together with interest
thereon from the date of purchase at the legal rate or at the rate
charged on any lien paid by the purchaser, whichever is higher, less
the amount of any income received from the lot, parcel, unit, or
interest, and the purchaser has failed to accept the offer in writing
within 30 days of its receipt. No offer of repurchase shall be
effective unless a duplicate copy thereof has been filed with the
commissioner at least 20 days prior to its delivery to the offeree
and the commissioner has not objected to the offer within that time.
The offer of repurchase shall be in the form and contain the
information the commissioner by rule or order prescribes. If the
purchaser no longer owns the lot, parcel, unit, or interest, the
purchaser shall be entitled to maintain an action at law, and the
damages shall be the consideration paid for the lot, parcel, unit, or
interest together with interest thereon as specified above from the
date of acquisition to the date of disposition, plus costs and
reasonable attorney's fees, less the value received for the lot,
parcel, unit, or interest at the date of disposition. Subd. 3.Rescission. A purchaser has an unconditional right to rescind
any contract, agreement, or other evidence of indebtedness, or revoke
any offer, at any time prior to or within five days after the date
the purchaser actually receives a legible copy of the binding
contract, agreement, or other evidence of indebtedness or offer and
the public offering statement as provided in section 83.24.
Predating of a document does not affect the time in which the right
to rescind may be exercised. The burden of proving that the document
was not predated is upon the subdivider or lender. Subd. 4.
Document labeling. Each contract, agreement, or other evidence of
indebtedness shall be prominently labeled and captioned that it is a
document taken in connection with a sale or other disposition of
lands under sections 83.20
to 83.42,
83.43
and 83.44.Subd. 5. Notice to purchaser. The first contract,
agreement, or other evidence of indebtedness shall prominently
contain upon its face the following notice in bold type, which shall
be at least 4 point type larger than the body of the document,
stating, in one of the following forms: (a) Registration by
notification: "Notice to Purchaser" -- "You are entitled to rescind
this agreement for any reason within five days from the date you
actually received a legible copy of this document signed by all
parties. The rescission must be in writing and mailed to the
subdivider or subdivider's agent or the lender at the address stated
in this document. Upon rescission you will receive a refund of all
money paid within 30 days after the subdivider receives notice of
your rescission." or; (b) Registration by qualification: "Notice
to Purchaser" -- "You are entitled to rescind this agreement for any
reason within five days from the date you actually received a legible
copy of this document signed by all parties and a public offering
statement. The rescission must be in writing and mailed to the
subdivider or subdivider's agent or the lender at the address stated
in this document. Upon rescission you will receive a refund of all
money paid within 30 days after the subdivider receives notice of
your rescission." The contract, agreement, or other evidence of
indebtedness shall contain sufficient space upon its face in
immediate proximity to the above notice for the signature of each
purchaser obligated under such instrument, acknowledging that such
purchaser has read the notice. Subd. 6. Rescission
notice. Rescission occurs when the purchaser gives written notice
of rescission to the subdivider or subdivider's agent or the lender
at the address stated in the contract, agreement, or other evidence
of indebtedness. Notice of rescission, if given by mail is effective
when it is deposited in a mailbox properly addressed and postage
prepaid. A notice of rescission given by the purchaser need not take
a particular form and is sufficient if it indicates by any form of
written expression the intention of the purchaser not to be bound by
the contract, agreement, or other evidence of indebtedness.
Subd. 7. Waiver prohibited. No act of a purchaser shall be
effective to waive the right to rescind as provided in this section.

83.29 Registration. Subdivision 1. Commissioner's
registration duties. Upon compliance with all the provisions of
sections 83.20
to 83.42
applicable to the application for registration and with the
requirements of the commissioner, and if the commissioner finds no
grounds for denial of the application, the commissioner shall
register the subdivided lands. The commissioner shall have power to
place such conditions, limitations, and restrictions on any
registration as may be necessary to carry out the purposes of
sections 83.20
to 83.42.
Registration shall be by entry in a book called Register of
Subdivided Lands, which entry shall show the subdivided lands
registered and for whom registered, and shall specify the conditions,
limitations, and restrictions upon such registration, if any, or
shall make proper reference to a formal order of the commissioner on
file showing such conditions, limitations, and restrictions.
Subd. 2. Denials. If the commissioner determines upon
inquiry and examination: (1) that any of the requirements of
sections 83.20
to 83.42
or the rules promulgated pursuant to sections 83.20
to 83.42
have not been met; (2) that the proposed promotional plan is or
tends to be fraudulent, deceptive, or misleading; (3) that the
sales of the lands would work or tend to work a fraud or deception on
the purchasers thereof; (4) that the sales of the lands would be
unfair or inequitable to the purchasers thereof; (5) that the
subdivider has violated any of the provisions of sections 83.20
to 83.42
or any order or rule of the commissioner; (6) that the subdivider
is not in compliance with federal, state, or local environmental
quality standards, the commissioner may issue an order denying
the application for registration; provided, however, that nothing in
this section shall authorize the commissioner to deny an application
based solely on the proposed sale price of the lands. The order
shall state the reasons for denial. Every person whose application
for registration has been denied shall have the right to a hearing
provided a request for such hearing is filed with the commissioner
within 30 days of the receipt of the order of denial. The order of
denial shall inform the applicant of the right to this hearing.
Subd. 3. Environmental quality standards. The state
environmental quality standards referred to in subdivision 2, clause
6, for the subdivision and development of land in this state shall be
established by the Environmental Quality Board. Thereafter, the
commissioner shall be required to include such standards in the rules
promulgated pursuant to section 83.38.Subd. 4. Document filing. A document is filed when it is
received by the commissioner and the proper fee is paid. Subd.
5. False, misleading, or deceptive advertising. No person
shall publish or cause to be published in this state any
advertisement offering subdivided lands subject to the registration
requirements of section 83.23
which is false, misleading, or deceptive.
83.30 Annual report. Subdivision 1. Form; due date.
During the period a registration is effective, the subdivider shall
file an annual report in a format the commissioner may by rule
prescribe. The report must include a financial statement of the
subdivider's most recent fiscal year, prepared by an accountant and
certified by the subdivider. An audited financial statement shall
not be required. Every annual report shall be due by the 120th day
following the end of the subdivider's fiscal year, unless extended in
writing by the commissioner for good cause. Subd. 2.
Fee. Every annual report filed pursuant to section 83.23,
subdivision 2, shall be accompanied by a fee of $75. Every annual
report filed pursuant to section 83.23,
subdivision 3, shall be accompanied by a fee of $150. Subd. 3.Failure to file; effect. Failure to file the annual report
shall be cause for cancellation of the registration. If canceled,
the registration may be reinstated at a subsequent date following the
filing of the report and payment of the appropriate fees.
83.31 Changes subsequent to registration. Subdivision 1.
Report of sales. The commissioner may by rule or order require
the subdivider or subdivider's agent to submit reports of sales.
Subd. 2. Report of material changes. A subdivider or
subdivider's agent shall within 30 days report any material changes
in the information contained in the application for registration or
the exhibits appended thereto on file with the commissioner by
submitting an application to amend accompanied by an amendment fee of
$25. Subd. 3. Rules; form of amendment. The
commissioner may by rule define what shall be considered a material
change and prescribe the format for an application to amend. The
amendment shall become effective when ordered by the commissioner.

83.32 Inspection of records. All records of a subdivider and the
subdivider's agents pertaining to the advertising or disposition of
subdivided lands shall be maintained by the subdivider and the
subdivider's agents and be subject to inspection by the commissioner.
The commissioner shall be promptly notified of any change of address
affecting the location of the records of the subdivider and the
subdivider's agents.
83.33 Blanket encumbrance sales and other prohibited acts. Subdivision 1. Compliance with rules. A person may not
sell lots, units, parcels, or interests within a subdivision subject
to a blanket encumbrance without having complied with such rules as
the commissioner may promulgate concerning such sales, which rules
shall be specific requirements for the protection of the purchaser.Subd. 2. Use of prohibited practice. The act, use, or
employment by any person of any prohibited practice as set forth in
section 83.24,
with the intent that others rely thereon in connection with the offer
or sale of subdivided lands not excepted from sections 83.20
to 83.42,
83.43
and 83.44
is a violation of sections 83.20
to 83.42,
83.43
and 83.44,
whether or not any person has in fact been damaged thereby.
Subd. 3. Repealed, 1984 c 452 s 30
83.34 Repealed, 1987 c 336 s 47
83.35 Enforcement; powers of commissioner. Subdivision 1.
Registration; revocation or suspension. After notice and
hearing, the commissioner may suspend or revoke a registration on
finding that the subdivider or person has: (1) violated any
provision of sections 83.20
to 83.42,
83.43
and 83.44
or any lawful order or rule of the commissioner; (2) directly or
through an agent or employee knowingly engaged in any false,
deceptive, or misleading advertising, promotional or sales methods to
offer to dispose of an interest in subdivided lands; (3) made any
material change in the advertising, plan of disposition, or
development of the subdivided lands subsequent to the order of
registration without obtaining prior approval from the commissioner;(4) offered or sold any subdivided lands which have not been
registered with the commissioner unless the subdivided lands or sales
thereof are exempt from registration pursuant to section 83.26;(5) been convicted, or if any of the subdivider's officers,
directors, partners, principals, or agents has been convicted, of a
crime involving fraud, deception, false pretenses, misrepresentation,
false advertising, or dishonest dealing in real estate transactions,
subsequent to the time of the filing of the application for
registration; (6) disposed of, concealed, or diverted any funds
or assets of any person so as to defeat the rights of subdivision
purchasers; (7) failed faithfully to perform any stipulation or
agreement made with the commissioner as an inducement to grant any
registration, to reinstate any registration, or to permit any
promotional plan or public offering statement; (8) made
misrepresentations or concealed material facts in an application for
registration; (9) permanently or temporarily been enjoined by any
court of competent jurisdiction from engaging in or continuing any
conduct or practice involving any aspect of land sales; or (10)
failed to pay any filing or inspection fee required by sections 83.20
to 83.42,
83.43
and 83.44.Subd. 2. Service of process. When initiating a
proceeding under subdivision 1, the commissioner shall serve upon the
subdivider or other person by personal service or by certified mail,
a written notice of hearing setting the date, time, and place of the
hearing and a statement of the allegations upon which the suspension
or revocation will be based. Subd. 3. Repealed, 1987 c 336 s 47Subd. 4. Amendment; registration suspension. Upon
receipt of an application to amend or other information indicating a
material change in the information on file with the commissioner,
and, if the commissioner determines such action to be necessary or
appropriate in the public interest or for the protection of
purchasers, the commissioner may, by order, suspend the registration
until satisfied that the subdivider or subdivider's agent has made
the proper changes in the public offering statement, advertising, and
promotional plan to provide full and fair disclosure of the material
change to the public. Subd. 5. Hearing. In the event
the commissioner issues an order under subdivision 4, the order shall
include in its terms a provision for a hearing within 10 days of the
date of the order, specifying a date, time, and place for the
hearing. Unless otherwise agreed, within 20 days of the close of the
hearing record, the commissioner shall issue an order either
vacating, modifying, or continuing the temporary order. If the
temporary order is continued or modified the commissioner shall state
reasons therefor.
83.36 Injunctions; receivers. If it appears that a person has
engaged or is about to engage in an act or practice constituting a
violation of sections 83.20
to 83.42,
83.43
and 83.44
or order hereunder, the commissioner, with or without prior
administrative proceedings, may bring an action in district court to
enjoin the acts or practices and to enforce compliance with sections
83.20
to 83.42,
83.43
and 83.44
or any rule or order hereunder. Upon proper showing, injunctive
relief or temporary restraining orders shall be granted and a
receiver or conservator may be appointed. The commissioner is not
required to post a bond in any court proceedings.
83.37 Penalties; civil remedies. Subdivision 1. Civil
fine. Any person who violates section 83.23,
83.24,
83.28,
83.29,
or 83.44
shall be subject to a fine of not more than $1,000 for each
violation. A fine authorized by this subdivision may be imposed in a
civil action brought by the attorney general on behalf of the state
of Minnesota, and shall be deposited in the state treasury. Every
person, agent, or employee of a person who materially aids in the act
or transaction constituting the violation shall be liable jointly and
severally with and to the same extent as the person. Subd. 2.Misdemeanor penalty. Any violation of sections 83.20
to 83.42
and any failure to comply with any provisions of sections 83.20
to 83.42
not enumerated in subdivision 1 shall be a misdemeanor. Subd. 3.Failure to pay fees. Any person who fails to pay the filing
or inspection fees required by sections 83.20
to 83.42,
83.43
and 83.44,
and continues to dispose of or offers to dispose of subdivided lands,
is liable civilly in an action brought by the attorney general on
behalf of the commissioner for a penalty in an amount equal to treble
the unpaid fees. Subd. 4. Prohibited practices;
remedies. In the event of any prohibited practice as set forth in
section 83.44,
in addition to any other remedies, and whether or not the purchaser
has in fact been damaged thereby, the purchaser may recover the
consideration paid for the lot, parcel, unit, or interest in
subdivided lands together with interest thereon at the legal rate
from the date of payment, property taxes paid, costs, and reasonable
attorneys fees, less the amount of any income received from the
subdivided lands, upon tender of appropriate instruments of
reconveyance. If the purchaser no longer owns the lot, parcel, unit,
or interest in subdivided lands, the purchaser may recover the amount
that would be recoverable upon a tender of a reconveyance, less the
value of the land when disposed of and less interest at the legal
rate on that amount from the date of sale. (a) A tender of
reconveyance may be made at any time before the entry of judgment.(b) Every person who directly or indirectly controls a subdivider
who may be liable under sections 83.20
to 83.42,
83.43
and 83.44,
every general partner, officer, or director of a subdivider, every
person occupying a similar status or performing a similar function,
every employee of the subdivider who materially aids in the
disposition, and every agent who materially aids in the disposition
is also liable jointly and severally with and to the same extent as
the subdivider, unless the person otherwise liable sustains the
burden of proof that such a person did not know and in the exercise
of reasonable care could not have known of the existence of the facts
by reason of which the liability is alleged to exist. There is a
right to contribution as in cases of contract among persons so
liable. (c) Every person whose name or occupation gives
authority to a statement which with the person's consent has been
used in an application for registration, public offering statement,
or advertising, if the person is not otherwise associated with the
subdivision and development plan in a material way, is liable only
for false statements and omissions in statements and only if it is
proved the person knew or reasonably should have known of the
existence of the true facts by reason of which the liability is
alleged to exist. (d) An action shall not be commenced pursuant
to this subdivision later than three years from the date the person
discovers any prohibited practice set forth in section 83.44.Subd. 5. Other remedies. The rights and remedies
provided by this chapter shall be in addition to any and all other
rights and remedies that may exist at law or in equity.
83.38 Administrative pronouncements. Subdivision 1.
Rulemaking. The commissioner may adopt rules to implement the
provisions of sections 83.20
to 83.42.
The rules may include but shall not be limited to: (a) provisions
for advertising standards to assure full and fair disclosure; (b)
provisions for escrow or trust agreement or other means reasonably to
assure that all improvements referred to in the application for
registration and advertising will be completed and that purchasers
will receive the interest in land contracted for; (c) provisions
for operating procedures; (d) provisions requiring instruments to
be executed in recordable form; (e) provisions relating to
apportionment of taxes among purchasers; (f) provisions for
cooperation with the commissioner of the Department of Natural
Resources to ensure compliance with environmental quality standards.Subd. 2. Interpretive opinions. The commissioner may,
upon request and upon the payment of the sum of $50, grant a request
for a written opinion concerning the availability of any exemption in
section 83.26
or interpreting any provisions of sections 83.20
to 83.42,
83.43
and 83.44.Subd. 3. General authority to classify. For the purpose
of rules and forms, the commissioner may by rule classify
subdivisions, persons and matters within the commissioner's
jurisdiction, and prescribe different requirements for different
classes.
83.39 Service of process. Subdivision 1. Procedure. Every
applicant for registration under sections 83.20
to 83.42,
83.43
and 83.44
shall file with the commissioner, in a format as by rule may be
prescribed, an irrevocable consent appointing the commissioner or
commissioner's successor to be the applicant's attorney to receive
service of any lawful process in any noncriminal suit, action, or
proceeding against the applicant or a successor, executor, or
administrator which arises under sections 83.20
to 83.42,
83.43
and 83.44
or any rule or order thereunder after the consent has been filed,
with the same force and validity as if served personally on the
person filing the consent. Service under this section shall be made
in compliance with section 45.028,
subdivision 2. Subd. 2. Service on commissioner. When
any person, including any nonresident of this state, engages in
conduct prohibited or made actionable by sections 83.20
to 83.42,
83.43
and 83.44,
or any rule or order thereunder, and the person has not filed a
consent to service of process under subdivision 1 and personal
jurisdiction over this person cannot otherwise be obtained in this
state, that conduct shall be considered equivalent to the person's
appointment of the commissioner or the commissioner's successor to be
the person's attorney to receive service of any lawful process in any
noncriminal suit, action, or proceeding against the commissioner or
the commissioner's successor, executor, or administrator which grows
out of that conduct and which is brought under sections 83.20
to 83.42,
83.43
and 83.44
or any rule or order thereunder, with the same force and validity as
if served on the person personally. Service under this section shall
be made in compliance with section 45.028,
subdivision 2. Subd. 3. Continuance. When process is
served under this section, the court, or the commissioner in a
proceeding before the commissioner, shall order such continuance as
may be necessary to afford the defendant or respondent reasonable
opportunity to defend.
83.40 Scope of sections 83.20 to 83.42,83.43 and 83.44. Subdivision 1. In-state offer or sale. The
provisions of sections 83.20
to 83.42,
83.43
and 83.44
concerning offers and sales of subdivided lands apply when an offer
or sale is made in this state. Subd. 2. In-state offer or
sale defined. For the purpose of sections 83.20
to 83.42,
83.43
and 83.44,
an offer or sale is made in this state, whether or not either party
is then present in this state, when: (a) the offer originates
from this state, or (b) the offer is directed by the offeror to
this state and received by the offeree in this state, or (c) the
subdivided lands are located in this state. Subd. 3.
Exclusions. An offer or sale is not made in this state when a
publisher circulates or there is circulated on the publisher's behalf
in this state any bona fide newspaper or other publication of
general, regular, and paid circulation which is not published in this
state, or a radio or television program originating outside this
state is received in this state. Subd. 4. Lien of
mortgage. Notwithstanding any provision of sections 83.20
to 83.42,
83.43
and 83.44
to the contrary, sections 83.20
to 83.42,
83.43
and 83.44
do not apply to or invalidate the lien of a mortgagee, nonaffiliated
with the subdivider, when said lien attaches to land pledged as
collateral in a transaction negotiated directly with the purchaser.

83.41 Interstate rendition. In the proceedings for extradition of
a person charged with a crime under sections 83.20
to 83.42,
83.43
and 83.44,
it need not be shown that the person whose surrender is demanded has
fled from justice or at the time of the commission of the crime was
in the demanding or other state.
83.42 Statute of limitations. The statute of limitations for
actions arising under this chapter shall be three years and shall not
begin to run with respect to any cause of action under this chapter,
other than those set forth in section 83.37,
subdivision 4, clause (d), until a conveyance describing such lot or
parcel is recorded with the appropriate recording authority. This
section does not prohibit the maintenance of any action before the
recording of such conveyance.
83.43 Criminal penalties. Any person who willfully violates any
provision of section 83.23
or 83.44
or any order of the commissioner under sections 83.20
to 83.42,
this section, and 83.44
of which the person has notice, may be fined not more than $10,000 or
imprisoned not more than five years or both. Each of the acts
specified shall constitute a separate offense and a prosecution or
conviction for any one of the offenses shall not bar prosecution or
conviction for any other offense.
83.44 Prohibited practices. It is unlawful for any person, in
connection with the offer or sale of any subdivided land or interests
therein, directly or indirectly: (a) to employ any device,
scheme, or artifice to defraud; (b) to make any untrue statement
of a material fact or to omit to state material facts necessary in
order to make the statements made, in the light of the circumstances
under which they are made, not misleading; (c) to engage in any
act, practice, or course of business which operates or would operate
as a fraud or deceit upon any person; or (d) to accept an advance
payment for services rendered by an agent in connection with the
resale of a time share interest.
83.45 Advertising; specific prohibitions. The following devices or
sales presentations, and the use of those devices or presentations
are deceptive or misleading practices: (1) An advertisement that
offers travel, accommodations, gifts, meals, or entertainment
published to induce prospective purchasers to visit a subdivision or
attend a sales presentation and that: (i) does not prominently
set forth all eligibility requirements; (ii) describes offers of
travel, accommodations, gifts, meals, or entertainment as "prizes,"
"awards," or by words of similar import or describes prospective
purchasers as "winners" or by words of similar import; (iii)
contains the words "free" or "no obligation" or similar terms unless
the offer contained in the advertisement is unequivocally without
conditions; (iv) states or implies that prospective purchasers
have been specially selected; (v) does not specifically state
that gifts will be provided at the time the prospective purchaser
visits the subdivision or attends the sales presentation; (vi)
does not disclose on its face page the retail market value of the
travel, accommodations, gifts, meals, or entertainment provided. For
purposes of this paragraph, "retail market value" means: the retail
price the item sells for in Minnesota; or if the item is not sold in
Minnesota, the retail price the item sells for in states contiguous
to Minnesota; or if the item is not sold in Minnesota or in any state
contiguous to this state, the retail price the item sells for
anywhere in the United States; (vii) does not specifically and
prominently disclose that the purpose of the offer of travel,
accommodations, gifts, meals, or entertainment is to induce
prospective purchasers to visit a subdivision or attend a sales
presentation where they will be encouraged to purchase subdivided
land; (viii) does not completely disclose rules and procedures if
travel, accommodations, gifts, meals, or entertainment are offered
through a "sweepstakes," "giveaway," or similar contest; (ix)
does not specifically disclose the odds, as a fraction, using a
common denominator, of a prospective purchaser's receiving each gift
if the gift is offered through a "sweepstakes," "giveaway," or
similar contest; or (x) does not clearly and prominently state
that gifts may be given to persons outside the state if the
advertisement is part of a national advertising campaign. (2) An
advertisement that does not prominently disclose the name, address,
and phone number of the subdivider on whose behalf the advertisement
is distributed. (3) An advertisement prepared on the stationery
of a person other than the subdivider which creates a likelihood of
confusion, misunderstanding, or deception.

USA Statutes : minnesota