1.1                          A bill for an act 
  1.2             relating to real property; specifying certain 
  1.3             additional warranties; specifying limitation of 
  1.4             actions based on breach; amending Minnesota Statutes 
  1.5             2002, sections 327A.02, subdivision 1, by adding a 
  1.6             subdivision; 327A.06; 541.051, subdivision 4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 327A.02, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [WARRANTIES BY VENDORS.] In every sale of a 
  1.11  completed dwelling, and in every contract for the sale of a 
  1.12  dwelling to be completed, the vendor shall warrant to the vendee 
  1.13  that: 
  1.14     (a) during the one-year period from and after the warranty 
  1.15  date the dwelling shall be free from defects caused by faulty 
  1.16  workmanship and defective materials due to noncompliance with 
  1.17  building standards; 
  1.18     (b) during the two-year period from and after the warranty 
  1.19  date, the dwelling shall be free from defects caused by faulty 
  1.20  installation of plumbing, electrical, heating, and cooling 
  1.21  systems due to noncompliance with building standards; and 
  1.22     (c) during the ten-year period from and after the warranty 
  1.23  date, the dwelling shall be free from major construction defects 
  1.24  due to noncompliance with building standards or defective 
  1.25  materials. 
  1.26     Sec. 2.  Minnesota Statutes 2002, section 327A.02, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 4.  [ACTION ALLOWED; LIMITATION.] An owner or vendee 
  2.3   has two years following the expiration of each of the warranty 
  2.4   periods provided in subdivisions 1 and 3, to discover a defect 
  2.5   which has occurred within the warranty period.  An action under 
  2.6   this section must be brought within one year of the discovery of 
  2.7   the defect.  Notwithstanding any law to the contrary, no action 
  2.8   under this section may be brought more than three years after 
  2.9   the expiration of each of the warranty periods provided in 
  2.10  subdivisions 1 and 3. 
  2.11     Sec. 3.  Minnesota Statutes 2002, section 327A.06, is 
  2.12  amended to read: 
  2.13     327A.06 [OTHER WARRANTIES.] 
  2.14     The statutory warranties provided for in section 327A.02 
  2.15  shall be in addition to all other warranties imposed by law or 
  2.16  agreement.  Statutory warranties provided for in section 327A.02 
  2.17  must not be construed to exclude incidental, consequential, or 
  2.18  indirect property damages.  The remedies provided in section 
  2.19  327A.05 shall not be construed as limiting the remedies in any 
  2.20  action not predicated upon breach of the statutory warranties 
  2.21  imposed by section 327A.02. 
  2.22     Sec. 4.  Minnesota Statutes 2002, section 541.051, 
  2.23  subdivision 4, is amended to read: 
  2.24     Subd. 4.  [APPLICABILITY.] This section shall not apply to 
  2.25  actions based on breach of the statutory warranties set forth in 
  2.26  section 327A.02, or to actions based on breach of an express 
  2.27  written warranty, provided such actions shall be brought within 
  2.28  two years of the discovery of the breach or as otherwise 
  2.29  provided in section 327A.02.