Bill Text: MN SF524 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Property management practices prohibition
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-10 - Comm report: To pass as amended and re-refer to Judiciary and Public Safety [SF524 Detail]
Download: Minnesota-2011-SF524-Engrossed.html
1.2relating to commerce; prohibiting certain practices relating to the management
1.3of certain properties; providing remedies;proposing coding for new law in
1.4Minnesota Statutes, chapter 325E.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [325E.67] PROPERTY MANAGEMENT.
1.7 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
1.8section.
1.9(b) "Person" means an individual, firm, partnership, limited liability company,
1.10corporation, or association.
1.11(c) "Property manager" or "property management company" means a person who
1.12engages in the business of managing real property that is owned by another person.
1.13(d) "Owner" means a person who has any legal or equitable interest in the real
1.14property. An owner of a common interest community, as defined in chapter 515B, means
1.15the unit owners' association organized under section 515B.3-101.
1.16 Subd. 2. Interest of property management company in certain firms. No
1.17property manager or property management company having an interest directly or
1.18indirectly in a construction firm, salvage firm, or appraisal firm may hire the directly or
1.19indirectly owned construction firm, salvage firm, or appraisal firm to perform work on a
1.20managed property unless the interest has been disclosed in writing to the owner or owners
1.21at least three days prior to the execution of a contract for the work. "Firm" includes a
1.22corporation, partnership, association, or individual firm.
2.1 Subd. 3. Prohibited practices. No property manager or property management
2.2company shall request or accept money, rebates, or anything of value from a construction
2.3firm, salvage firm, or appraisal firm as:
2.4(1) an inducement to refer business or clients to the firm;
2.5(2) a condition for awarding a contract to the firm;
2.6(3) part of a fee specified in a contract; or
2.7(4) fee splitting for services rendered, unless the other person is also a licensed
2.8contractor.
2.9 Subd. 4. Remedies. If a property manager or property management company
2.10violates this section, an owner may bring an action against the property manager or
2.11property management company in a court of competent jurisdiction for damages sustained
2.12by the owner as a consequence of the property manager's or property management
2.13company's violation, together with the actual costs of the action, including reasonable
2.14attorney fees. The remedies in this section are in addition to any other remedies permitted
2.15by law.
1.3of certain properties; providing remedies;proposing coding for new law in
1.4Minnesota Statutes, chapter 325E.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [325E.67] PROPERTY MANAGEMENT.
1.7 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
1.8section.
1.9(b) "Person" means an individual, firm, partnership, limited liability company,
1.10corporation, or association.
1.11(c) "Property manager" or "property management company" means a person who
1.12engages in the business of managing real property that is owned by another person.
1.13(d) "Owner" means a person who has any legal or equitable interest in the real
1.14property. An owner of a common interest community, as defined in chapter 515B, means
1.15the unit owners' association organized under section 515B.3-101.
1.16 Subd. 2. Interest of property management company in certain firms. No
1.17property manager or property management company having an interest directly or
1.18indirectly in a construction firm, salvage firm, or appraisal firm may hire the directly or
1.19indirectly owned construction firm, salvage firm, or appraisal firm to perform work on a
1.20managed property unless the interest has been disclosed in writing to the owner or owners
1.21at least three days prior to the execution of a contract for the work. "Firm" includes a
1.22corporation, partnership, association, or individual firm.
2.1 Subd. 3. Prohibited practices. No property manager or property management
2.2company shall request or accept money, rebates, or anything of value from a construction
2.3firm, salvage firm, or appraisal firm as:
2.4(1) an inducement to refer business or clients to the firm;
2.5(2) a condition for awarding a contract to the firm;
2.6(3) part of a fee specified in a contract; or
2.7(4) fee splitting for services rendered, unless the other person is also a licensed
2.8contractor.
2.9 Subd. 4. Remedies. If a property manager or property management company
2.10violates this section, an owner may bring an action against the property manager or
2.11property management company in a court of competent jurisdiction for damages sustained
2.12by the owner as a consequence of the property manager's or property management
2.13company's violation, together with the actual costs of the action, including reasonable
2.14attorney fees. The remedies in this section are in addition to any other remedies permitted
2.15by law.
