Frequently Asked Questions
MCIOA

MN COMMON INTEREST OWNERSHIP ACT (MCIOA) 2005 STATUTORY CHANGES
Just when you thought you had finally understood last year’s changes to the MCIOA, the statute that regulates the sale of condominiums, townhomes and cooperatives, additional legislative changes have been passed and will be effective August 1, 2005. A brief history; MNAR successfully pursued legislation in 2004 modifying the purchaser’s right of rescission, for both an initial sale and resale of a CIC, from ten (10) days down to five (5) days. This was a compromise position with the MCIOA Committee of the MN Bar Association from our original proposal to allow for the buyer to waive the remaining time period once they had received and had an opportunity to review the required documents.

The MCIOA Committee of the Bar pursued legislation this session that contained numerous changes to the MCIOA statute. In this legislation the Bar proposed to change the Purchaser’s Right of Rescission period for an initial sale of a CIC back to ten (10) days. MNAR worked with the Bar and came to a compromise position which was passed by the legislature and is summarized below.

The purchaser's right of rescission, for both initial and resale of a unit, will be changed back to ten (10) days. However, the revised language allows the buyer to waive the remaining rescission period after the buyer has received and had an opportunity to review the required Association documents for a minimum of three (3) days.

A waiver of the purchaser’s right of rescission must be evidenced by a written instrument separate from the purchase agreement and signed by the buyer more than three days after the purchaser receives the amendment.

The MNAR has modified the CIC Addendum as well as adopted a new form entitled Common Interest Community Waiver of Purchaser’s Right of Rescission (Residential). The new form was created to meet the new statutory requirements allowing a buyer to waive or modify the remaining purchaser’s right of rescission time period.

In addition to the modification to the CIC purchaser’s right of rescission there were other changes made in this legislation. Following is a summary of those changes.

1.	The exemption for planned communities was changed from twelve (12) or fewer to two (2) units.
2.	Made certain changes to the requirements pertaining to delivery of a disclosure statement and builder's liability.
3.	Made several changes to the disclosure requirements in the Resale Disclosure Certificate & Disclosure Statement.
4.	Requires a professional opinion by a registered architect or engineer in the case of conversions.
5.	Requires that the Declaration include an additional disclosure. Specifically, the Declaration must include a statement as to whether the common interest community includes any shoreland, as defined in Minnesota Statutes § 103F.205, and, if the common interest community includes shoreland, a statement that the common interest community may be subject to county, township, or municipal ordinances or rules affecting the development and use of the shoreland area.