1.1                          A bill for an act 
  1.2             relating to real property; statutory home warranties; 
  1.3             amending the exclusions for liability of the vendor 
  1.4             and home improvement contractor; specifying limitation 
  1.5             of actions based on breach; amending Minnesota 
  1.6             Statutes 2002, sections 327A.03; 541.051, subdivision 
  1.7             4. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 327A.03, is 
  1.10  amended to read: 
  1.11     327A.03 [EXCLUSIONS.] 
  1.12     The liability of the vendor or the home improvement 
  1.13  contractor under sections 327A.01 to 327A.07 is limited to the 
  1.14  specific items set forth in sections 327A.01 to 327A.07 and does 
  1.15  not extend to the following: 
  1.16     (a) loss or damage not reported by the vendee or the owner 
  1.17  to the vendor or the home improvement contractor in writing 
  1.18  within six months after the vendee or the owner discovers or 
  1.19  should have discovered the loss or damage; 
  1.20     (b) loss or damage caused by defects in design, 
  1.21  installation, or materials which the vendee or the owner 
  1.22  supplied, installed, or directed to be installed; 
  1.23     (c) secondary loss or damage such as personal injury or 
  1.24  property damage; 
  1.25     (d) loss or damage from normal wear and tear; 
  1.26     (e) loss or damage from normal shrinkage caused by drying 
  2.1   of the dwelling or the home improvement within tolerances of 
  2.2   building standards; 
  2.3      (f) loss or damage from dampness and condensation due to 
  2.4   insufficient ventilation after occupancy; 
  2.5      (g) loss or damage from negligence, improper maintenance or 
  2.6   alteration of the dwelling or the home improvement by parties 
  2.7   other than the vendor or the home improvement contractor; 
  2.8      (h) loss or damage from changes in grading of the ground 
  2.9   around the dwelling or the home improvement by parties other 
  2.10  than the vendor or the home improvement contractor; 
  2.11     (i) landscaping or insect loss or damage; 
  2.12     (j) loss or damage from failure to maintain the dwelling or 
  2.13  the home improvement in good repair; 
  2.14     (k) loss or damage which the vendee or the owner, whenever 
  2.15  feasible, has not taken timely action to minimize; 
  2.16     (l) loss or damage which occurs after the dwelling or the 
  2.17  home improvement is no longer used primarily as a residence; 
  2.18     (m) accidental loss or damage usually described as acts of 
  2.19  God, including, but not limited to:  fire, explosion, smoke, 
  2.20  water escape, windstorm, hail or lightning, falling trees, 
  2.21  aircraft and vehicles, flood, and earthquake, except when the 
  2.22  loss or damage is caused by failure to comply with building 
  2.23  standards; 
  2.24     (n) loss or damage from soil movement which is compensated 
  2.25  by legislation or covered by insurance; 
  2.26     (o) loss or damage due to soil conditions where 
  2.27  construction is done upon lands owned by the vendee or the owner 
  2.28  and obtained by the vendee or owner from a source independent of 
  2.29  the vendor or the home improvement contractor; 
  2.30     (p) in the case of home improvement work, loss or damage 
  2.31  due to defects in the existing structure and systems not caused 
  2.32  by the home improvement.; 
  2.33     (q) claims or actions brought against any vendor for 
  2.34  defects discovered after one year from the warranty date for 
  2.35  defects described in section 327A.02, subdivision 1, paragraph 
  2.36  (a); 
  3.1      (r) claims or actions brought against any vendor for 
  3.2   defects discovered after two years from the warranty date for 
  3.3   defects described in section 327A.02, subdivision 1, paragraph 
  3.4   (b); 
  3.5      (s) claims or actions brought against any vendor for 
  3.6   defects discovered after ten years from the warranty date for 
  3.7   defects described in section 327A.02, subdivision 1, paragraph 
  3.8   (c); 
  3.9      (t) claims or actions brought against any contractor for 
  3.10  defects discovered after one year from the warranty date for 
  3.11  defects described in section 327A.02, subdivision 3, paragraphs 
  3.12  (a), clause (1), and (c); 
  3.13     (u) claims or actions brought against any contractor for 
  3.14  defects discovered after ten years from the warranty date for 
  3.15  defects described in section 327A.02, subdivision 3, paragraph 
  3.16  (a), clause (2); and 
  3.17     (v) claims or actions brought against any contractor for 
  3.18  defects discovered after two years from the warranty date for 
  3.19  defects described in section 327A.02, subdivision 3, paragraph 
  3.20  (b).  
  3.21     Sec. 2.  Minnesota Statutes 2002, section 541.051, 
  3.22  subdivision 4, is amended to read: 
  3.23     Subd. 4.  [APPLICABILITY STATUTORY OR EXPRESS 
  3.24  WARRANTIES.] (a) This section shall not apply to actions based 
  3.25  on breach of the statutory warranties set forth in section 
  3.26  327A.02, or to actions based on breach of an express written 
  3.27  warranty, provided such actions shall be brought within two 
  3.28  years of the discovery of the breach of an express written 
  3.29  warranty or as otherwise provided in this subdivision.  
  3.30     (b) Except where fraud is involved, no action by a vendee 
  3.31  may be brought against a vendor for defects discovered after one 
  3.32  year from the date of the warranty for defects described in 
  3.33  section 327A.02, subdivision 1, paragraph (a). 
  3.34     (c) Except where fraud is involved, no action by a vendee 
  3.35  may be brought against a vendor for defects discovered after two 
  3.36  years from the date of the warranty for defects described in 
  4.1   section 327A.02, subdivision 1, paragraph (b). 
  4.2      (d) Except where fraud is involved, no action by a vendee 
  4.3   may be brought against a vendor for defects discovered after ten 
  4.4   years from the date of warranty for defects described in section 
  4.5   327A.02, subdivision 1, paragraph (c). 
  4.6      (e) Except where fraud is involved, no action by an owner 
  4.7   may be brought against a contractor for defects discovered after 
  4.8   one year from the date of the warranty for defects described in 
  4.9   section 327A.02, subdivision 3, paragraphs (a), clause (1), and 
  4.10  (c). 
  4.11     (f) Except where fraud is involved, no action by an owner 
  4.12  may be brought against a contractor for defects discovered after 
  4.13  ten years from the date of the warranty for defects described in 
  4.14  section 327A.02, subdivision 1, paragraph (a), clause (2). 
  4.15     (g) Except where fraud is involved, no action by an owner 
  4.16  may be brought against a contractor for defects discovered after 
  4.17  two years from the date of warranty for defects described in 
  4.18  section 327A.02, subdivision 3, paragraph (b).