1.1 	A bill for an act
1.2 	relating to real estate; eliminating a requirement that homeowner's notice to 
1.3 	building contractor of construction defect be in writing;amending Minnesota 
1.4 	Statutes 2008, sections 327A.02, subdivision 4; 327A.03.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 327A.02, subdivision 4, is amended to 
1.7 	read:
1.8 		Subd. 4.Response from vendor to notice of claim. (a) Following notice under 
1.9 	section 327A.03, the vendee must allow an inspection and opportunity to offer to repair 
1.10 	the known loss or damage. Upon request of the vendee, a court may order the vendor to 
1.11 	conduct the inspection. The inspection must be performed and any offer to repair must 
1.12 	be made in writing to the vendee within 30 days of the vendor's receipt of the written or 
1.13 	actual notice required under section 327A.03, clause (a), alleging loss or damage. The 
1.14 	applicable statute of limitations is tolled from the date the written notice provided by the 
1.15 	vendee is postmarked, or if not sent through the mail, received by the vendor until the 
1.16 	earliest of the following:
1.17 	(1) the date the vendee rejects the vendor's offer to repair;
1.18 	(2) the date the vendor rejects the vendee's claim in writing;
1.19 	(3) failure by the vendor to make an offer to repair within the 30-day period 
1.20 	described in this subdivision; or
1.21 	(4) 180 days.
1.22 	For purposes of this subdivision, "vendor" includes a home improvement contractor.
1.23 	(b) Upon completion of repairs as described in an offer to repair, the vendor must 
1.24 	provide the vendee with a list of the repairs made and a notice that the vendee may have 
2.1 	a right to pursue a warranty claim under this chapter. Provision of this statement is not 
2.2 	an admission of liability. Compliance with this subdivision does not affect any rights 
2.3 	of the vendee under this chapter.

2.4 	EFFECTIVE DATE. This section is effective the day following final enactment 
2.5 	and applies to notices given on or after that date.

2.6 	Sec. 2. Minnesota Statutes 2008, section 327A.03, is amended to read:
2.7 	327A.03 EXCLUSIONS.
2.8 	The liability of the vendor or the home improvement contractor under sections 
2.9 	327A.01 to 327A.07 is limited to the specific items set forth in sections 327A.01 to 
2.10 	327A.07 and does not extend to the following: 
2.11 	(a) loss or damage not reported by the vendee or the owner to the vendor or the home 
2.12 	improvement contractor in writing or otherwise within six months after the vendee or the 
2.13 	owner discovers or should have discovered the loss or damage;
2.14 	(b) loss or damage caused by defects in design, installation, or materials which the 
2.15 	vendee or the owner supplied, installed, or directed to be installed;
2.16 	(c) secondary loss or damage such as personal injury or property damage;
2.17 	(d) loss or damage from normal wear and tear;
2.18 	(e) loss or damage from normal shrinkage caused by drying of the dwelling or the 
2.19 	home improvement within tolerances of building standards;
2.20 	(f) loss or damage from dampness and condensation due to insufficient ventilation 
2.21 	after occupancy;
2.22 	(g) loss or damage from negligence, improper maintenance or alteration of the 
2.23 	dwelling or the home improvement by parties other than the vendor or the home 
2.24 	improvement contractor;
2.25 	(h) loss or damage from changes in grading of the ground around the dwelling or the 
2.26 	home improvement by parties other than the vendor or the home improvement contractor;
2.27 	(i) landscaping or insect loss or damage;
2.28 	(j) loss or damage from failure to maintain the dwelling or the home improvement 
2.29 	in good repair;
2.30 	(k) loss or damage which the vendee or the owner, whenever feasible, has not taken 
2.31 	timely action to minimize;
2.32 	(l) loss or damage which occurs after the dwelling or the home improvement is 
2.33 	no longer used primarily as a residence;
3.1 	(m) accidental loss or damage usually described as acts of God, including, but not 
3.2 	limited to: fire, explosion, smoke, water escape, windstorm, hail or lightning, falling trees, 
3.3 	aircraft and vehicles, flood, and earthquake, except when the loss or damage is caused by 
3.4 	failure to comply with building standards;
3.5 	(n) loss or damage from soil movement which is compensated by legislation or 
3.6 	covered by insurance;
3.7 	(o) loss or damage due to soil conditions where construction is done upon lands 
3.8 	owned by the vendee or the owner and obtained by the vendee or owner from a source 
3.9 	independent of the vendor or the home improvement contractor;
3.10 	(p) in the case of home improvement work, loss or damage due to defects in the 
3.11 	existing structure and systems not caused by the home improvement.

3.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
3.13 	and applies to notices given on or after that date.