CONDOMINIUM CONVERSIONS

Minneapolis Code of Ordinances tit. 12, ch. 250

in effect

Minneapolis Code of Ordinances § 250.10 Definitions.

250.10. - Definitions. The following words and phrases used in this chapter shall have the meanings set forth below: (1) Condominium: Real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of the separate ownership portions. Real estate is not a condominium unless the undivided interests in the common elements are vested in the units' owners. (2) Conversion condominium: A condominium containing a building which at any time before the recording of the declaration creating a condominium under Minnesota Statutes contained residential rental units. (3) Declarant: (a) If the condominium has been created, any person who has executed a declaration other than persons holding interests in the real estate solely as security for an obligation, persons whose interests in real estate will not be conveyed to unit owners, or, in the case of a leasehold condominium, a lessor who is not an affiliate of a declarant; or (b) If the condominium has not yet been created, any person who offers to dispose of his interest in a unit not previously disposed of. (4) Affiliate of a declarant: Any person who controls, is controlled by, or is under common control with a declarant. (a) A person "controls" a declarant if the person: (i) Is a general partner, officer, director or employee of the declarant; or (ii) Directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than twenty (20) percent of the voting interests of the declarant; or (iii) Controls in any manner the election of a majority of the directors of the declarant; or (iv) Has contributed more than twenty (20) percent of the capital of the declarant. (b) A person "is controlled by" a declarant if the declarant: (i) Is a general partner, officer, director or employee of the person; or (ii) Directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than twenty (20) percent of the voting interests of the person; or (iii) Controls in any manner the election of a majority of the directors of the person; or (iv) Has contributed more than twenty (20) percent of the capital of the person. (5) Person: A natural person, corporation, partnership, trust or other entity, or any combination thereof. (6) Purchaser: Any person, other than a declarant, who by means of a voluntary transfer acquires a legal or equitable interest in a unit, other than: (i) A leasehold interest (including renewal options) of less than three (3) years; or (ii) As security for an obligation. (7) Security for an obligation: The vendor's interest in a contract for deed, mortgagee's interest in a mortgage, purchaser's interest under a sheriff's certificate of sale, or the holder's interest in a lien. (8) Unit: A portion of the condominium whether or not contained solely or partially within a building designated for separate ownership. (79-Or-209, § 1, 10-26-79)

Minneapolis Code of Ordinances § 250.20 Application of chapter to conversion of condominiums.

250.20. - Application of chapter to conversion of condominiums. The chapter shall apply only to conversion condominiums for which the declaration creating a condominium under Minnesota Statutes has been recorded on or after November 3, 1979. (79-Or-209, § 1, 10-26-79)

Minneapolis Code of Ordinances § 250.30 Notice of conversion to council member of the ward and Minneapolis planning commission.

250.30. - Notice of conversion to council member of the ward and Minneapolis planning commission. On the date of giving of the first notice of a conversion as provided in section 250.40 hereof, the declarant shall send by United States mail to the council member of the ward in which the conversion condominium is located and to the Minneapolis Planning Commission written notice of conversion, which states the fact of conversion or the intent to convert. (79-Or-209, § 1, 10-26-79; Pet. No. 252271, § 45, 5-11-90)

Minneapolis Code of Ordinances § 250.40 Notice to occupants.

250.40. - Notice to occupants. A declarant of a conversion condominium which has been created or is intended to be created shall give the occupants of the building notice of conversion which states the fact of conversion or the intent to convert at least one hundred twenty (120) days, or in the case of a unit with an occupant on the date of delivery of the notice who is sixty-five (65) years of age or older, under the age of eighteen (18), or who is legally handicapped as defined under Minnesota Statutes, one hundred eighty (180) days, before the declarant will require such parties to vacate. The notice shall be delivered once with respect to each unit and shall have attached thereto a copy of this Chapter 250 and a form of purchase agreement setting forth the terms of sale contemplated by section 250.50 hereof. No occupant may be required by the declarant to vacate during said one hundred twenty- or one hundred eighty-day period, except by reason of nonpayment of rent, waste or unlawful conduct, or violation of any other term or condition of lease other than the expiration, and the terms of the tenancy may not be altered during that period. Failure of a declarant to give notice as required by this section constitutes a defense to an action for possession. After notice of conversion has been given to any unit, the declarant shall thereafter notify any new tenant who leases any unit in the building from the declarant that the building is or is to become part of a condominium. The notice referred to in this section shall state that a tenants' association may be formed for the purpose of making an offer to purchase the property which is the subject of the conversion condominium. The provision contained in the preceding sentence does not create a right on the part of such tenants' association to purchase such property or an obligation on anyone to negotiate with, finance or arrange financing for, or sell such property to such tenants' association. (79-Or-209, § 1, 10-26-79; Pet. No. 252271, § 46, 5-11-90)

Minneapolis Code of Ordinances § 250.50 Purchase rights.

250.50. - Purchase rights. (a) For sixty (60) days after delivery of the notice of conversion described in section 250.40 hereof, the holder of the lessee's interest created by the declarant or the declarant's predecessor shall have an option to purchase the leased unit on the terms set forth in the purchase agreement attached to the notice. If such holder fails to exercise the option during that sixty-day period, the declarant may not offer to dispose of an interest in that unit during the following one hundred eighty (180) days at a price or on terms more favorable to the offeree than the price or terms offered to such holder. This subsection does not apply to any unit in a conversion condominium if that unit will be restricted exclusively to nonresidential use or if the boundaries of the converted unit do not substantially conform to the dimensions of the residential unit before conversion. (b) If a declarant, in violation of this section, conveys a unit to a purchaser for value who has no knowledge of the violation, delivery of the deed conveying the unit extinguishes any right which a lessee not in possession may have under this section to purchase that unit, but does not affect the right of such lessee to recover damages from the declarant for a violation of this section. (c) Nothing in this section permits termination of a lease by a declarant in violation of its terms. The rights conferred by this section are subject to any purchase agreement or other contract existing prior to November 3, 1979. (79-Or-209, § 1, 10-26-79; Pet. No. 252271, § 47, 5-11-90)

Minneapolis Code of Ordinances § 250.60 Express warranties.

250.60. - Express warranties. (a) Express warranties made by any declarant to a purchaser of a unit, if relied upon by the purchaser, are created as follows: (1) Any affirmation of fact or promise which relates to the unit, its use, or rights appurtenant thereto; area improvements to the condominium that would directly benefit the unit; or the right to use or have the benefit of facilities not located in the condominium; creates an express warranty that the unit and related rights and uses will conform to the affirmation or promise; (2) Any model or description of the physical characteristics of the condominium, including plans and specifications of or for improvements, creates an express warranty that the condominium will conform to the model or description; (3) Any description of the quantity or extent of the real estate comprising the condominium, including plats or surveys, creates an express warranty that the condominium will conform to the description, subject to customary tolerance; and (4) A provision that a purchaser may put a unit to a specified use is an express warranty that the specified use is lawful. (b) Neither formal words, such as "warranty" or "guarantee," nor a specific intention to make a warranty, are necessary to create an express warranty, but a statement purporting to be merely an opinion or commendation of the real estate or its value does not create a warranty. (c) Any conveyance of a unit transfers to the purchaser all express warranties made by the declarant. (79-Or-209, § 1, 10-26-79)

Minneapolis Code of Ordinances § 250.70 Implied warranties.

250.70. - Implied warranties. (a) A declarant warrants that a unit will be in at least as good condition at the earlier of the time of the conveyance or delivery of possession as it was at the time of contracting, reasonable wear and tear excepted. (b) A declarant impliedly warrants that a unit and the common elements in the condominium are suitable for the ordinary uses of real estate of its type and that any improvements made or contracted for by the declarant or made by any person in contemplation of the creation of the condominium will be: (1) Free from defective materials; and (2) Constructed in accordance with applicable law, according to sound engineering and construction standards, and in a professional manner. (c) In addition, a declarant warrants to a purchaser of a unit which may be used for residential use that an existing use, continuation of which is contemplated by the parties, does not violate applicable law at the earlier of the time of conveyance or delivery of possession. (d) Warranties imposed by this section may be excluded or modified as specified in section 250.80. (e) For purposes of this section, improvements made or contracted for by an affiliate of a declarant are made or contracted for by the declarant. (f) Any conveyance of a unit transfers to the purchaser all or any of declarant's implied warranties of quality. (79-Or-209, § 1, 10-26-79; Pet. No. 252271, § 48, 5-11-90)

Minneapolis Code of Ordinances § 250.80 Exclusion or modification of implied warranties.

250.80. - Exclusion or modification of implied warranties. (a) Except as limited by subsection (b), implied warranties: (1) May be excluded or modified by agreement of the parties; and (2) Are excluded by expression of disclaimer, such as "as is," "with all faults," or other language which in common understanding calls the buyer's attention to the exclusion of warranties. (b) With respect to a purchaser of a unit which may be occupied for residential use, no general disclaimer of implied warranties is effective, but a declarant may disclaim liability in an instrument signed by the purchaser for a specified defect or specified failure to comply with applicable law, if the defect or failure entered into and became a part of the basis of the bargain. (79-Or-209, § 1, 10-26-79)

Minneapolis Code of Ordinances § 250.90 Statutes of limitations for warranties.

250.90. - Statutes of limitations for warranties. (a) A judicial proceeding for breach of any obligation arising under sections 250.60 and 250.70 must be commenced within six (6) years after the cause of action accrues. (b) Subject to subsection (c) hereof, a cause of action under sections 250.60 and 250.70, regardless of the purchaser's lack of knowledge of the breach, accrues: (1) As to a unit, when the purchaser to whom the warranty is first made enters into possession if a possessory interest was conveyed or at the time of acceptance of the instrument of conveyance if a nonpossessory interest was conveyed; and (2) As to each common element, the later of (i) the time the common element is completed, and (ii) the time the first unit in the condominium is conveyed to a bona fide purchaser. (c) If a warranty under sections 250.60 and 250.70 explicitly extends to future performance or duration of any improvements or component of the condominium, the cause of action accrues at the time the breach is discovered or at the end of the period for which the warranty explicitly extends, whichever is earlier. (79-Or-209, § 1, 10-26-79)

Minneapolis Code of Ordinances § 250.100 Right to rescind.

250.100. - Right to rescind. A lessee may rescind a purchase agreement of a unit offered for sale hereunder by delivering to the declarant at the address stated in the purchase agreement by registered or certified United States mail, postage prepaid, a written notice of rescission within five (5) days of execution of such an agreement by the lessee. Upon receipt of such a notice of rescission the declarant shall promptly refund any earnest money received, without deduction therefrom or interest thereon, whereupon the purchase agreement shall become null and void. The rights under this section are in addition to the rights afforded purchasers under the Minnesota Uniform Condominium Act, Article 4. (79-Or-209, § 1, 10-26-79; Pet. No. 252271, § 49, 5-11-90)

Minneapolis Code of Ordinances § 250.110 Delivery of notice.

250.110. - Delivery of notice. Unless otherwise provided herein, all notices required by this chapter shall be in writing and shall be either personally delivered or delivered by United States mail, postage prepaid, and addressed to the named tenant or "occupant" at the address of the unit. Delivery shall be complete upon mailing. (79-Or-209, § 1, 10-26-79)

Minneapolis Code of Ordinances § 250.120 Truth-in-housing disclosure report required.

250.120. - Truth-in-housing disclosure report required. The truth-in-housing disclosure report provisions of Chapter 248 of the Minneapolis Code of Ordinances shall apply to sales by declarants of individual residential units in conversion condominiums. The disclosure report shall identify all required repair/replace items pursuant to section 248.70. The disclosure report must also include information concerning any damage to the dwelling due to flooding, any evidence of chronic water seepage, and information on the age and current condition of the roof as required by section 248.30. A professional opinion on the present condition of all heating, water, gas, electrical, plumbing, structural, and roof systems located or servicing common areas of the conversion condominium must also be provided in accordance with section 248.70. The truth-in-housing disclosure report and professional opinion required by this section shall be delivered to prospective purchasers, including tenants, at the time when the declarant must deliver to the purchaser the disclosure items required by the Minnesota Common Interest Ownership Act, Article 4, or when the condominium conversion notice must be provided to tenants, whichever is sooner. (79-Or-209, § 1, 10-26-79; Pet. No. 252271, § 50, 5-11-90; 2005-Or-144, § 1, 12-23-05)

Source: City of Minneapolis, Minnesota, Code of Ordinances, City Charter and Park and Recreation Board Code of Ordinances (Municode Library, library.municode.com)URL: https://library.municode.com/mn/minneapolis/codes/code_of_ordinances?nodeId=COOR_TIT12HO_CH250COCOFetched: 11/2/2026